Dils Brothers' 2019 financial statements show average shareholders' equity of $20,412 million, net income of $5,040 million, and average total assets of $86,700 million.
How much is Dils Brothers' return on assets for the year?
A) 11.42%
B) 5.81%
C) 24.69%
D) 4.77%

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is calculated as Net Income divided by Average Total Assets. For Dils Brothers, ROA = ($5,040 million / $86,700 million) * 100 = 5.81%.

Dils Brothers' 2019 Financial Statements Show Average Shareholders' Equity of $20,412