Return on total assets can be separated into the profit margin ratio and total asset turnover.

Name: Return on total assets can be separated into the profit margin ratio and total asset turnover.
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

Return on total assets (ROTA) is calculated by dividing net income by total assets. ROTA can be further broken down into two components: profit margin ratio (net income divided by net sales) and total asset turnover (net sales divided by total assets).

Return on Total Assets Can Be Separated into the Profit