The 2020 annual report of Trocchi Inc. contains the following information (in thousands):

Instructions

a. Finance Calculate the following ratios for Trocchi Inc. for 2020. Round answers to two decimal places.

1. Asset turnover ratio

2. Rate of return on assets

3. Profit margin on sales

b. How can the asset turnover ratio be used to calculate the rate of return on assets?

c. Briefly comment on the results for the ratios calculated in part (a).

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Dec. 31, 2020 Dec. 31, 2019 $1,071,348 626,178 3,374,463 66,234 $ 787,167 410,044 2,443,592 49,062 Total assets Total liabilities Consolidated sales Net income