Satisfactory return on assets may be achieved through high profit margins or rapid turnover of assets, but not a combination of both.

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Quizplus · Accepted Answer

A satisfactory return on assets can be achieved through a combination of high profit margins and rapid turnover of assets. This is known as the DuPont model of financial analysis, which breaks down return on assets into two components: profit margin and asset turnover. Improving both components can lead to a higher return on assets.

Satisfactory Return on Assets May Be Achieved Through High Profit