Return on Assets – Return on Assets (ROA) is used to identify the profitability of the company in comparison to the assets of the company. ROA is the profitability ratio and gives a manager, investor, or analyst an idea as to how efficient a company’s management is at using its assets to generate earnings. Return on assets is displayed as a percentage and is calculated as: R O A = N e t I n c o m e / A v e r a g e T o t a l A s s e t s w h e r e i n , A v e r a g e T o t a l A s s e t s = ( A s s e t s i n t h e b e g i n n i n g o f t h e p e r i o d + A s s e t s a t t h e e n d ) / 2 To determine: Swiss Group’s 2017 return on assets and to assess its performance

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Chapter 1, Problem 14E

To determine

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Return on Assets – Return on Assets (ROA) is used to identify the profitability of the company in comparison to the assets of the company. ROA is the profitability ratio and gives a manager, investor, or analyst an idea as to how efficient a company’s management is at using its assets to generate earnings. Return on assets is displayed as a percentage and is calculated as:

$\begin{array}{l} R O A = N e t I n c o m e / A v e r a g e T o t a l A s s e t s \\ w h e r e i n, A v e r a g e T o t a l A s s e t s = (A s s e t s i n t h e b e g i n n i n g o f t h e p e r i o d + A s s e t s a t t h e e n d) / 2 \end{array}$

To determine: Swiss Group’s 2017 return on assets and to assess its performance

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