Return on assets cannot fall under which of the following circumstances?
Net Profit Margin
Total Asset Turnover
A) decline rise
B) rise decline
C) rise rise
D) decline decline
E) The ratio could fall under all of the answers.

Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated as Net Profit Margin multiplied by Total Asset Turnover. If both net profit margin and total asset turnover rise, ROA cannot fall.

Return on Assets Cannot Fall Under Which of the Following