The rate of return on total assets is a ratio that measures the success a company has in using its assets to earn income.

Question

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The rate of return on total assets (ROTA) measures how efficiently a company is using its assets to generate profits. It is calculated by dividing the net income by the total assets. Therefore, the higher the ROTA, the more effectively the company is using its assets to generate profits.

The Rate of Return on Total Assets Is a Ratio