Return on assets is most closely related to

Question

Quizplus · Accepted Answer

Return on assets (ROA) is a metric that indicates how efficiently a company is using its assets to generate earnings. It is calculated by dividing net income by total assets. Profit margin and asset turnover are two key components of ROA. Profit margin measures how much a company earns from each dollar of sales, while asset turnover measures how efficiently a company's assets are being used to generate revenue. Therefore, B is the best choice because it includes both profit margin and asset turnover, which are most closely related to ROA.

Return on Assets Is Most Closely Related to