KJ Goods Co. has a total assets turnover of 0.30 and a profit margin of 10%. The CEO is unhappy with the current return on assets, and he thinks it could be doubled. This could be accomplished by increasing the profit margin to 15% and by increasing total assets turnover. What new asset turnover ratio, along with the 15% profit margin, is required to double the return on assets?

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.