Staples, inc. is one of the largest suppliers of office products in the united states. suppose it had net income of $738.7 million and sales of $24,275.5 million in 2017. its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. what is staples, inc.’s (a) asset turnover and (b) profit margin? (round asset turnover to 2 decimal places, e. g. 1.25 and profit margin to 1 decimal place, e. g. 2.5%.)

(a) Asset turnover ratio = 3.62 times

(b) Profit margin = 3%

Explanation:

(a) Asset turnover ratio is computed to calculate the sales relative to the company's assets.

It's formula =

Where net sales are taken as it is from income statement and average assets is the sum of opening and closing assets divided by two.

Average assets here =

= = $13,395.2

Net Sales = $24,275.5

Asset turnover ratio =

(b) Profit margin =

This ratio is calculated in percentage and this is to evaluate the company's net margin on sales.

Profit margin = = 3%

Final Answer

(a) Asset turnover ratio = 3.62 times

(b) Profit margin = 3%

answer; functional fixedness;