Skrit Corporation has a net profit margin of 15% and a total asset turnover of 1.7. What is Skrit's return on total assets?
A) 12.3%
B) 25.5%
C) 8.8%
D) 11.1%

Name: Skrit Corporation has a net profit margin of 15% and a total asset turnover of 1.7. What is Skrit's return on total assets? A) 12.3% B) 25.5% C) 8.8% D) 11.1%
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Question

Quizplus · Accepted Answer

The return on total assets (ROA) is calculated by multiplying the net profit margin by the total asset turnover. In this case, ROA = 15% * 1.7 = 25.5%.

Skrit Corporation Has a Net Profit Margin of 15% and a Total