Big K Grocer's financial statements show average shareholders' equity of $5,103 million, net income of $700 million, and average total assets of $23,175 million.
How much is Big K Grocer's return on assets for the year?
A) 21.42%
B) 3.02%
C) 21.24%
D) 4.77%
E) There is not enough information to calculate the ratio.

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is calculated as Net Income divided by Average Total Assets. So, ROA = $700 million / $23,175 million = 0.0302 or 3.02%.

Big K Grocer's Financial Statements Show Average Shareholders' Equity of $5,103