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.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 1.6.1MBA

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 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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

i need this question answer General accounting

Get correct answer general accounting question

Cost of goods sold under a periodic system?

Answer 2

Question

Chapter 1, Problem 1.6.1MBA

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 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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 1.6.1MBA

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 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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 1.6.1MBA

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 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.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 1.6.1MBA

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 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.

Answer 6

Chapter 1, Problem 1.6.1MBA

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 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.

Answer 7

Chapter 1, Problem 1.6.1MBA

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 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.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

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.

Want to see the full answer?

Chapter 1 Solutions