Port Harcourt Logistics Limited reports the following for the year ended 31 December 2023: Revenue = ₦450,000,000; Cost of sales = ₦270,000,000; Operating expenses = ₦90,000,000; Total assets = ₦500,000,000. Using the Du Pont analysis framework, what is the company's asset turnover ratio?

Asset turnover ratio = Revenue ÷ Total assets = ₦450,000,000 ÷ ₦500,000,000 = 0.90 times. In the Du Pont framework, Return on Assets = Net profit margin × Asset turnover, where asset turnover measures how efficiently assets generate revenue. Net profit = ₦450m − ₦270m − ₦90m = ₦90m, giving a net margin of 20%, and ROA = 20% × 0.9 = 18%.