Return on total assets measures
A)The percent of profit in each dollar of net sales
B)A company's ability to produce sales from their assets
C)A company's ability to produce profit from their assets
D)A company's ability to increase its asset base from sales
E)A company's ability to increase its asset base from profit

Question

Quizplus · Accepted Answer

Return on total assets measures a company's ability to produce profit from their assets. This ratio shows how much profit a company is generating for every dollar of assets it owns. It is calculated by dividing net income by total assets.

Return on Total Assets Measures