Kalebs Karate Supply had a profit margin of 6.7 percent, sales of $14.2 million, and total assets

Question:

Kaleb’s Karate Supply had a profit margin of 6.7 percent, sales of $14.2 million, and total assets of $6.75 million. What was total asset turnover? If management set a goal of increasing total asset turnover to 2.75 times, what would the new sales figure need to be, assuming no increase in total assets?

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.

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