Chapter 1, Problem 1.4.4MBA

To determine

Introduction:

Return on Assets:

It is used to indicate the profitability of the company in relation to its total assets. In simple words, it determines the efficiency of the company in generating returns from their economic resources or assets. It is calculated as:

$\begin{array}{l}\mathrm{R}\text{eturn on Assets = }\frac{\text{Net Income}}{\text{Average Total Assets}}\\ \end{array}$

To calculate:

The return on assets of company A.