Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. If the

Question:

Dimeback Co. has total assets of $8,500,000 and a total asset turnover of 1.8 times. If the return on assets is 8.5 percent, what is its profit margin?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.