Operating Income / Average Assets = _______________

Name: Operating Income / Average Assets = _______________
Brand: Quizplus
Rating: 4.7 (60 reviews)

Question

Quizplus · Accepted Answer

This formula represents the rate of return on total assets (ROA), which measures the efficiency of a company in generating profits from its assets. It shows how much operating income is generated for every dollar of average assets held by the company. A higher ROA indicates better profitability and asset utilization.