(a)
Profitability Ratios: The ratios which help to determine the ability of a company to attain profit are the profitability ratios. These ratios help to determine the performance of a company and the financial decision-makers and the users are benefitted from this. The common profitability ratios are the asset turnover, profit margin, return on assets and return on equity.
To determine: Asset turnover
(b)
Profitability Ratios: The ratios which help to determine the ability of a company to attain profit are the profitability ratios. These ratios help to determine the performance of a company and the financial decision-makers and the users are benefitted from this. The common profitability ratios are the asset turnover, profit margin, return on assets and return on equity.
To determine: profit margin.
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Managerial Accounting: Tools for Business Decision Making
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