Return on Assets: It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula: Return on Assets (ROA) = Net Income Average Total assets × 100 This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities. To analyze: The ranking of company A, company B and company C according to their return on assets.

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Answer 1

Question

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

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Answer 2

Question

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

Answer 6

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

Answer 7

Chapter 1, Problem 1.5.3MBA

To determine

Return on Assets:

It is a profitability ratio that is used to measure the net profits generated by total assets throughout the period. In simple words, it indicates the efficiency of a company in dealing its assets to earn net income. It is calculated by using following formula:

Return on Assets (ROA) = Net IncomeAverage Total assets×100

This ratio is used in comparing a company with its competitor in the industry as it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.

To analyze:

The ranking of company A, company B and company C according to their return on assets.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1 - Prob. 1SEQ Ch. 1 - The resources owned by a business are called: A....Ch. 1 - A listing of a business entity’s assets,...Ch. 1 - If total assets are $20,000 and total liabilities...Ch. 1 - Prob. 5SEQ Ch. 1 - Prob. 1CDQ Ch. 1 - Prob. 2CDQ Ch. 1 - Prob. 3CDQ Ch. 1 - Prob. 4CDQ Ch. 1 - Prob. 5CDQ

Solution Summary: The author explains Return on Assets, a profitability ratio that measures the net profits generated by total assets throughout the period.

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Chapter 1 Solutions