To study changes in ROA, the analyst can disaggregate ROA into the product of two other ratios: the profit margin for ROA ratio and the total assets turnover ratio.

Name: To study changes in ROA, the analyst can disaggregate ROA into the product of two other ratios: the profit margin for ROA ratio and the total assets turnover ratio.
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Question

Quizplus · Accepted Answer

Disaggregating ROA into the product of profit margin and total assets turnover can help determine which component may be driving changes in overall ROA.

To Study Changes in ROA, the Analyst Can Disaggregate ROA