Velocity Auto Parts Inc. has the following financial information: • Debt Ratio (DA) = 0.40 • • • Total Asset Turnover Ratio (S/A) = 1.60 = Sales ($) $12,500 Net Profit Margin = 0.08 Calculate the Return on Assets (ROA) for Velocity Auto Parts Inc.

Velocity Auto Parts Inc. has the following financial information: • Debt Ratio (DA) = 0.40 • • • Total Asset Turnover Ratio (S/A) = 1.60 = Sales ($) $12,500 Net Profit Margin = 0.08 Calculate the Return on Assets (ROA) for Velocity Auto Parts Inc.

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...

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Question

Calculate the return on assets

Velocity Auto Parts Inc. has the following financial information:
•
Debt Ratio (DA) = 0.40
•
•
•
Total Asset Turnover Ratio (S/A) = 1.60
=
Sales ($) $12,500
Net Profit Margin = 0.08
Calculate the Return on Assets (ROA) for Velocity Auto Parts
Inc.

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