Both profit margin and asset turnover affect a company's return on assets.

Name: Both profit margin and asset turnover affect a company's return on assets.
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Both profit margin (net income/sales) and asset turnover (sales/average total assets) are factors that impact a company's return on assets (net income/average total assets). A company with a high profit margin or a high asset turnover, or both, will generally have a higher return on assets.

Both Profit Margin and Asset Turnover Affect a Company's Return