Final answer:
To calculate the Net Profit Margin (NPM) with a given Return on Assets (ROA) of 9.9% and Asset Turnover (ATO) of 1.9, you use the formula NPM = ROA / ATO. The resulting NPM is 5.21%.
Step-by-step explanation:
The question is asking to calculate the Net Profit Margin (NPM) given the Return on Assets (ROA) and the Asset Turnover (ATO). The formula to find the NPM when you know the ROA and ATO is: ROA = NPM × ATO
To find the NPM, you would rearrange this formula to solve for NPM, which gives you: NPM = ROA / ATO
With the given values, ROA = 9.9% and ATO = 1.9, we can calculate NPM as follows: NPM = 9.9% / 1.9 NPM = 5.21%
Therefore, the Net Profit Margin is 5.21%.