The financial ratio measured as net income divided by total assets is known as the firm's:
A) Profit margin.
B) Return on assets.
C) Return on equity.
D) Asset turnover.
E) Earnings before interest and taxes (EBIT).

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is calculated by dividing a company's net income by its total assets. This ratio indicates how efficiently a company is using its assets to generate profit.

The Financial Ratio Measured as Net Income Divided by Total