Question

Braam Fire Prevention Corp. has a profit margin of 10.70 percent, total asset turnover of 1.39, and ROE of 18.71 percent. What is the profit margin, total asset turnover, and ROE of Braam Fire Prevention Corp.?

Answer 1

Braam Fire Prevention Corp. has a profit margin of 10.70 percent, total asset turnover of 1.39, and ROE of 18.71 percent.

Step-by-step explanation:

The profit margin is a financial ratio that measures the amount of profit a company earns for every dollar of revenue it generates. It is calculated by dividing the company's net income by its revenue and multiplying by 100. In this case, the profit margin of Braam Fire Prevention Corp. is 10.70 percent.

The total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. It is calculated by dividing the company's revenue by its average total assets. In this case, the total asset turnover of Braam Fire Prevention Corp. is 1.39.

The return on equity (ROE) is a financial ratio that measures a company's profitability relative to its shareholders' equity. It is calculated by dividing the company's net income by its average shareholders' equity and multiplying by 100. In this case, the ROE of Braam Fire Prevention Corp. is 18.71 percent.