The ________ measures a company's success in using its assets to earn income for the stakeholders who are financing the business.

Question

Quizplus · Accepted Answer

Return on assets measures how efficiently a company uses its assets to generate income. It calculates the net income as a percentage of the total assets, indicating the level of income generated for every dollar of assets used. This metric helps the stakeholders to evaluate the company's profitability and efficiency in generating income.

The ________ Measures a Company's Success in Using Its Assets