Either a drop in net profit margin or a drop in total asset turnover,or both,can cause return on assets to fall.

Name: Either a drop in net profit margin or a drop in total asset turnover,or both,can cause return on assets to fall.
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Question

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Both a drop in net profit margin and a drop in total asset turnover can cause return on assets (ROA) to fall. ROA is calculated by dividing net profit margin by total asset turnover, so if either of these two factors decrease, ROA will decrease as well.

Either a Drop in Net Profit Margin or a Drop