Ratios: Return on Assets (ROA) Video Lessons

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Problem: Which of the following equations can be used to measure the return on assets (ROA)? A) Net Income/Average Total Assets B) Net Profit Margin x Asset Turnover C) (Net Income/Net Sales) x (Net Sales/Average Total Assets) D) All of the above.

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Problem Details

Which of the following equations can be used to measure the return on assets (ROA)?

A) Net Income/Average Total Assets

B) Net Profit Margin x Asset Turnover

C) (Net Income/Net Sales) x (Net Sales/Average Total Assets)

D) All of the above.

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