ROA is the product of:
A) net income margin and asset turnover.
B) book value and asset turnover.
C) leverage and book value.
D) net income margin and leverage.

Name: ROA is the product of: A) net income margin and asset turnover. B) book value and asset turnover. C) leverage and book value. D) net income margin and leverage.
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Question

Quizplus · Accepted Answer

ROA (Return on Assets) is calculated by multiplying the net income margin by the asset turnover. This measures how efficiently a company uses its assets to generate earnings.

ROA Is the Product Of