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Return on assets (ROA) is a financial ratio that measures the profitability of business organizations. It states, in percentage terms, how much revenue is generated for the investment in total assets.
Return-on-assets ratio is most closely related to: a. profit margin and debt-to-total-assets ratio b. profit margin and asset-turnover ratio c. times interest earned and debt-to-stockholders equity ratio d. profit margin and free cash flow; The debt to total assets ratio is one measure used to assess the long-term debt-paying ability of a firm.
The return on assets ratio calls for the denominator to be total assets, which can be found on a company's balance sheet. To find total assets, you would add current and long-term assets. Now that ...
Return on assets: a. measures overall profitability of total assets b. all are correct c. is a profitability ratio d. is calculated: net income divided by average total assets A company has a return on equity of 20 percent, a debt ratio of 55 percent, and a profit margin of 12 percent.
The most popular profitability ratios are the return on equity (ROE), return on assets (ROA), and return on capital employed (ROCE). Answer and Explanation: 1 The formula for calculating the return on asset ratio (ROA) is as follows:
Return on Equity (ROE) is a financial ratio used to measure the company's net income ... The equity is calculated by subtracting liabilities from assets. The equity ratio is a leverage ratio used ...
The return on equity ratio is a ratio that shows how much of shareholder equity generates profit. It's considered a profitability ratio, ... Return on Assets: Definition, Formula & Example ...
a. Times interest earned ratio b. Rate of return on total assets c. Current ratio d. Accounts receivable turnover; Using the following information from a balance sheet and an income statement, compute the (1) profit margin, (2) asset turnover, (3) return on assets, (4) debt to equity ratio, and (5) return on equity.
The rate of return on total assets will be greater than the rate of return on common stockholders' equity if the company has been successful in trading on the equity at a gain. a. True. b. False. If income from operations for a division is $30,000, sales are $263,750, and invested assets are $187,500, the investment turnover is 1.3.
Common profitability ratios include gross margin, operating margin, return on assets, return on sales, return on equity and return on investment. Learning Outcomes This video lesson is designed to ...