Asked by
Vigie Abinsay
on Oct 22, 2024Verified
Return on assets = ___.
A) Current Assets ÷ Current Liabilities
B) Sales ÷ Total Assets
C) Total Debts ÷ Total Assets
D) Net Income ÷ Total Assets
E) Current Assets - Inventories ÷ Current Liabilities
Return on Assets
A financial ratio that indicates the profitability of a company in relation to its total assets.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.
Net Income
Refers to the total earnings or profit of a company after subtracting all expenses from its total revenue.
- Comprehend and compute financial ratios for assessing liquidity, profitability, and efficiency metrics.
Verified Answer
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Learning Objectives
- Comprehend and compute financial ratios for assessing liquidity, profitability, and efficiency metrics.