In general, a firm's return on assets will be less than its return on equity.

Name: In general, a firm's return on assets will be less than its return on equity.
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Return on assets (ROA) is the measure of how efficiently a company uses its assets to generate profits, while return on equity (ROE) measures the return generated on the equity invested by the shareholders. Since ROE takes into account the leverage or borrowed capital used by the company, it is generally higher than ROA.

In General, a Firm's Return on Assets Will Be Less