Which of the following ratios will usually have the lowest percent?
A)Return on investment
B)Return on total equity
C)Return on common equity
D)Return on total assets
E)There is not enough information to tell

Question

Quizplus · Accepted Answer

Return on total assets (ROA) typically has the lowest percent among the options given because it measures profitability relative to a company's total assets, which is a broader base than equity alone. This means it often results in a lower percentage compared to returns calculated based on equity or investment, which use narrower bases.

Which of the Following Ratios Will Usually Have the Lowest