Operating return on assets is equal to the operating profit margin times total asset turnover.

Name: Operating return on assets is equal to the operating profit margin times total asset turnover.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Operating return on assets (ROA) is calculated by multiplying the operating profit margin (operating income/sales) with the total asset turnover (sales/total assets) which gives us the operating income divided by total assets. Therefore, the statement is true.

Operating Return on Assets Is Equal to the Operating Profit