Aladdin Grocer's 2019 financial statements show average shareholders' equity of $15,309 million, net income of $2,940 million, and average total assets of $65,025 million.
How much is Aladdin Grocer's return on assets for the year?
A) 27.42%
B) 4.52%
C) 19.18%
D) 5.56%

Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated as net income divided by average total assets. ROA = $2,940 million / $65,025 million = 0.0452 or 4.52%.

Aladdin Grocer's 2019 Financial Statements Show Average Shareholders' Equity of $15,309