The return on assets can be computed from the profit margin ratio and the asset turnover ratio.

Name: The return on assets can be computed from the profit margin ratio and the asset turnover ratio.
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The return on assets (ROA) can be calculated by multiplying the profit margin ratio and the asset turnover ratio. This is because ROA is equal to net income divided by total assets, which can also be expressed as (net income/sales) x (sales/total assets), or profit margin x asset turnover.

The Return on Assets Can Be Computed from the Profit