Answer:
4.35 % ; 0.41
Step-by-step explanation:
Given
(sales ÷ total assets) = 2.23
ROA = 9.69%
ROE = 16.4%
ROA = Net income ÷ total assets
= [(Net income ÷ net sales) ÷ (net sales ÷ total assets)]
(Net income ÷ net sales) = [ROA ÷ (net sales ÷ total assets) ]
= 0.969 ÷ 2.23
= 0.0435
Net profit margin = net income ÷ net sales
= 0.0435
= 4.35 %
ROE = net income ÷ total equity
ROE = (net income ÷ net sales) × (net sales ÷ total assets) × (total assets ÷ total equity)
(Total assets ÷ total equity) = ROE ÷ [(net income ÷ net sales) × (net sales ÷ total assets)]
= 0.164 ÷ (0.0435 × 2.23)
= 0.164 ÷ 0.097
= 1.69
Equity multiplier = total assets ÷ total equity
Equity multiplier = ROE ÷ ROA
= 0.164 ÷ 0.0969
= 1.69
Equity multiplier = 1 + debt-to-equity ratio
Debt-to-equity ratio = equity multiplier - 1
= 1.69 - 1
= 0.69
Total debt ratio:
= debt-to-equity ratio ÷ (1+debt-to-equity ratio)
= 0.69 ÷ (1+ 0.69)
= 0.41