Danny's Dog Delivery has total assets of $975, sales of $989, net profit after taxes of $56, and operating income of $576. Which of the following is the return on assets ratio for this business?
A) 0.057
B) 0.591
C) 0.986
D) 1.01

Question

Quizplus · Accepted Answer

The return on assets (ROA) ratio is calculated by dividing net profit after taxes by total assets. For Danny's Dog Delivery, this is $56 / $975 = 0.057 or 5.7%.

Danny's Dog Delivery Has Total Assets of $975, Sales of $989