Cash return on assets indicates the amount of operating cash flow generated for each dollar invested in assets.

Question

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Cash return on assets (CROA) is a financial ratio that measures the amount of operating cash flow generated by a company for each dollar of assets it owns. It indicates how effectively a company is utilizing its assets to generate cash flow from its operations. A higher CROA indicates better efficiency in asset utilization and higher profitability.

Cash Return on Assets Indicates the Amount of Operating Cash