Net profit after taxes per dollar of assets is a basic measure of bank profitability called
A)return on assets.
B)return on capital.
C)return on equity.
D)return on investment.

Question

Quizplus · Accepted Answer

Net profit after taxes per dollar of assets is commonly known as return on assets (ROA), which is a fundamental measure of a bank's profitability. It shows how efficiently a bank is utilizing its assets to generate profits. ROA is expressed as a percentage, and a higher ROA indicates better profitability. The other options, return on capital (ROC), return on equity (ROE), and return on investment (ROI), are also measures of bank profitability, but they have different calculations and meanings.

Net Profit After Taxes Per Dollar of Assets Is a Basic