Question
A company's financial statements show a profit margin of
15% and a return on equity (ROE) of 20%. What is the company's asset turnover ratio assuming financial leverage of 2?Solution
The asset turnover ratio is calculated as revenue divided by total assets. Using the formula for ROE, we can solve for the asset turnover ratio: ROE = Profit margin x Asset turnover ratio x Leverage 20% = 15% x Asset turnover ratio x (Total assets / Shareholder equity) Asset turnover ratio = 20% / (15% x (Total assets / Shareholder equity)) Asset turnover ratio = 20% / (15% x 2) Asset turnover ratio = 0.67 Â
Statements:  V ≥ W > X = Y, C > D = E ≥ V
Conclusions :
I. E ≥ W
II. D ≥ Y
III. C > V
ÂStatements: F < G ≤ H; D < I; J ≥ G; F < A < D
Conclusions:
I. I > F
II. J > A
III. D > G
Statements: 2 < 4 = 8 ≤ 6; 4 ≥ 9 = 7 ≥ 10
Conclusions: I. 6 > 10 II. 6 = 10
In the question, assuming the given statements to be true, find which of the conclusion (s) among given three conclusions is /are definitely true and t...
Which of the following expressions will be true if the expression ‘J ≥ K > L ≥ M’ is definitely true?
Statement: A ≤ B ≤ C > D; E < D; F > E
Conclusions: I. D > A II. E < C
...If we arrange all the letters of the word ‘SUPPLIERS’ in alphabetical order from the left end, then, which letter will remain at its initial positio...
Statements: Z ≤ O = Q < P; A = X > M = Y ≥ P
Conclusions:
I. A > O
II. Z < X
III. Q ≤ M
Statements: J > K = L ≥ M ≥ Q; N < O ≤ P < Q
Conclusions:
I. Q > N
II. J > O
Statements: O ≥ M > F, K ≤ J ≤ D = F, B ≤ Z ≤ L = K
Conclusion:
I. M > L
II. D ≥ B
