Question

Alford Hardware had a profit margin of 12.7% and return on assets of 10.8% in 2022. What was their asset turnover?

Answer 1

Answer: 0.85

Step-by-step explanation:

Given the variables in the question, Asset Turnover is calculated by;

= Return on Assets / Profit Margin

= 10.8%/12.7%

= 0.85