Jasper bought some new equipment for his business. Six months later he wants to know whether this was a good idea. To do that, he can calculate the:

Question

Quizplus · Accepted Answer

The return on assets (ROA) ratio measures the efficiency of a company's use of its assets to generate earnings. This is the best choice for evaluating whether the purchase of new equipment was a good idea, as it will determine the profitability of the investment.

Jasper Bought Some New Equipment for His Business