Following is the information listed below for Carter State Bank.What is the bank's ROA? $\begin{array} { l l }
\text { Net income } & \$ 55 \text { million } \
\text { Total operating revenue } & \$ 650 \text { million } \
\text { Total assets } & \$ 4,055 \text { million } \
\text { Total equity capital } & \$ 350 \text { million }
\end{array}$
A)8.46 percent
B)16.03 percent
C)15.71 percent
D)1.36 percent
E)None of the options is correct

Question

Following is the information listed below for Carter State Bank.What is the bank's ROA? $\begin{array} { l l } 
\text { Net income } & \$ 55 \text { million } \
\text { Total operating revenue } & \$ 650 \text { million } \
\text { Total assets } & \$ 4,055 \text { million } \
\text { Total equity capital } & \$ 350 \text { million }
\end{array}$
A)8.46 percent
B)16.03 percent
C)15.71 percent
D)1.36 percent
E)None of the options is correct

Quizplus · Accepted Answer

ROA (Return on Assets) is calculated as Net Income divided by Total Assets. Thus, ROA = $55 million / $4,055 million = 0.01356 or 1.36%.

Following Is the Information Listed Below for Carter State Bank