Storm King Associates has a total asset turnover ratio of 1.90 and a return on total assets of 7.20%.What is Storm King's net profit margin?

Name: Storm King Associates has a total asset turnover ratio of 1.90 and a return on total assets of 7.20%.What is Storm King's net profit margin?
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Question

Quizplus · Accepted Answer

The net profit margin can be calculated using the formula: Net Profit Margin = (Return on Total Assets / Total Asset Turnover) * 100. Plugging in the given values: (7.20% / 1.90) * 100 = 3.79%.

Storm King Associates Has a Total Asset Turnover Ratio of 1.90