Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%.
A) .05
B) .56
C) 1.8
D) 20

Name: Determine the asset intensity of a venture with the following financial information: net profit = $22,000; revenues = $132,000; return on assets 30%. A) .05 B) .56 C) 1.8 D) 20
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Question

Quizplus · Accepted Answer

Asset intensity is calculated as the inverse of return on assets (ROA). Given ROA is 30%, asset intensity is 1/0.30 = 0.56.

Determine the Asset Intensity of a Venture with the Following