Match each definition with the correct term; you will not use all the terms. A G

Question

Match each definition with the correct term; you will not use all the terms. A Gross profit margin B. ROA C. sales-to-total-assets ratio (aka asset turnover) The percentage of sales that becomes accounting profit The percentage of sales that becomes profit, once you adjust for leverage. ow much accounting profit was generated for each dollar D. net profit margin of assets E Operating profit margin F. ROE G. NOPAT margin How many dollars of sales were generated for each dollar of assets ch dollar of

Explanation / Answer

1)The percentage of sales that becomes accounting profit = Net Profit margin
Answer is D.
2)The percentage of sales that becomes profit once you adjust for leverage=Operating profit margin
answer is E
3)Accounting profit generated for each dollar of asset=ROA
Answer is B
4)How many dollars of sales was generated for each dollar of asset=Sales to total asset Ratio
answer is C

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