Return on assets is defined as:
A) Sales divided by net fixed assets.
B) EBIT divided by net fixed assets.
C) Net income divided by net fixed assets.
D) EBIT divided by total assets.
E) Net income divided by total assets.

Question

Quizplus · Accepted Answer

Return on assets (ROA) is defined as net income divided by total assets, which measures how efficiently a company uses its assets to generate profit.

Return on Assets Is Defined As