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 since it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities. The ranking of company A, company B and company C in terms of return on assets without computing the same for each company.
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 since it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities. The ranking of company A, company B and company C in terms of return on assets without computing the same for each company.
Solution Summary: The author explains Return on Assets, a profitability ratio that measures the net profits generated by total assets throughout the period.
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 since it shows the ability of any business to generate profits from its assets which helps investors in recognizing good stock opportunities.
The ranking of company A, company B and company C in terms of return on assets without computing the same for each company.
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In 2022, North Shore Community College had a total student body that was 5% more than in 2021, which was 5% more than in 2020. The enrollment in 2022 was 4,200. How many students attended the college in 2021? How many students attended the college in 2020?
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