A company is ATR is evaluated by calculating its asset turnover ratio as follows:
ATR Net sales Average total assets
Hershey is 2008 ATR is calculated as:
Tootsie Roll is PMR after eliminating the impact of the nonrecurring items and of capital structure fiscal is calculated as:
Tootsie Roll is 2008 ATR is calculated as:
As stated above, these two ratios (PMR and ATR) are actually components of the ROA, as indicated by the following: