Assets tend to depreciate in value.
If you mean working capital based assets depending on the specifics, it's either -2.1%, -21% or -50%.
Return on equity is 0% by the 50:50 ratio of debt to equity, on the basis that the debt debit is equal inversely to the equity interest.
Return on assets = financial year on financial year output of machinery - financial year on year depreciation of machinery value
Assume that a company has a profit margin of 8.0 percent, an asset turnover of 2.1 times, and a debt to equity ratio of 50 percent.
What are the company's return on assets and return on equity? Round answers to one decimal place.
I have already calculated the Return on Assets to be %16.8.
I need to know what formula to use or what I need to do to calculate the Return on Assets.
