Which of the following indicates the ability of a company to generate income from its average investment in total assets?
A)Return on assets
B)Return of stockholders' equity
C)Gross profit margin
D)Profit margin

Question

Quizplus · Accepted Answer

Return on assets (ROA) measures a company's ability to generate income from its average investment in total assets. It is calculated by dividing net income by average total assets. This financial ratio helps assess a company's efficiency in using its assets to generate profits.

Which of the Following Indicates the Ability of a Company