The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

Name: The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.
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Question

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The cash flow on total assets ratio formula is:

Cash flows from operations / Average total assets

This ratio measures how much cash flow is generated from each dollar of assets. It helps investors and analysts assess the efficiency and profitability of a company's assets.

The Cash Flow on Total Assets Ratio Is Computed by Dividing