Cash return on assets can be separated to examine two important business strategies: cash flow to sales and asset turnover.

Question

Quizplus · Accepted Answer

Cash return on assets (CROA) is a financial metric that measures the amount of cash flow generated by a company's assets. It can be broken down into two components, cash flow to sales and asset turnover, which represent different business strategies. Therefore, the statement is true.

Cash Return on Assets Can Be Separated to Examine Two