Return on assets = _____
A) Current Assets/Current Liabilities
B) Sales/Total Assets
C) Total Debts/Total Assets
D) Net Income/Total Assets
E) Current Assets - Inventories/Current Liabilities

Question

Quizplus · Accepted Answer

Return on assets (ROA) measures how efficiently a company uses its assets to generate profits. It is calculated by dividing net income by total assets. This means that D) Net Income/Total Assets is the correct formula for calculating ROA.

Return on Assets = _____