The following financial information pertains to Harrison Bank.
$\begin{array} { c r }
\text { Net Profit Margin } & 12.5 \% \
\text { Net Income } & \$ 1000 \
\text { Total Assets } & \$ 62,500 \
\text { Total Equity } & \$ 6250
\end{array}$
-What is the bank's ROA?
A)1.6%
B)10%
C)12.8%
D)16%
E)None of the options is correct

Question

The following financial information pertains to Harrison Bank.
$\begin{array} { c r } 
\text { Net Profit Margin } & 12.5 \% \
\text { Net Income } & \$ 1000 \
\text { Total Assets } & \$ 62,500 \
\text { Total Equity } & \$ 6250
\end{array}$
-What is the bank's ROA?
A)1.6%
B)10%
C)12.8%
D)16%
E)None of the options is correct

Quizplus · Accepted Answer

ROA (Return on Assets) is calculated as Net Income divided by Total Assets. ROA = $1000 / $62,500 = 0.016 or 1.6%.

The Following Financial Information Pertains to Harrison Bank -What Is the Bank's ROA? A)1

The Following Financial Information Pertains to Harrison Bank -What Is the Bank's ROA?
A)1