Luminara Pty Ltd has a net profit margin of 15% and a total asset turnover of 1.7.What is Luminara's return on total assets?
A)12.3%
B)25.5%
C)8.8%
D)11.1%

Name: Luminara Pty Ltd has a net profit margin of 15% and a total asset turnover of 1.7.What is Luminara's return on total assets? A)12.3% B)25.5% C)8.8% D)11.1%
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Question

Quizplus · Accepted Answer

The return on total assets (ROA) is calculated by multiplying the net profit margin by the total asset turnover. So, for Luminara Pty Ltd, ROA = 15% * 1.7 = 25.5%.

Luminara Pty Ltd Has a Net Profit Margin of 15