What is calculated as follows? $\begin{array} { l }
?&=&\begin{array} { l }
\text {Profit Margin for ROA }\ \text {(before interest expense }\ \text {and related income }\ \text {tax savings) Ratio }\
\end{array}&\times&\begin{array} { l }
\text {Total Assets }\ \text {Turnover}\ \text {Ratio }\
\end{array}\
\end{array}$

A)return on net assets
B)return on sales margin
C)return on gross margin
D)return on assets
E)return on net income

Question

What is calculated as follows? $\begin{array} { l  }
?&=&\begin{array} { l  }
 \text {Profit Margin for ROA }\ \text {(before interest expense }\ \text {and related income }\ \text {tax savings) Ratio }\
\end{array}&\times&\begin{array} { l  }
 \text {Total Assets  }\ \text {Turnover}\ \text {Ratio }\
\end{array}\
\end{array}$

A)return on net assets
B)return on sales margin
C)return on gross margin
D)return on assets
E)return on net income

Quizplus · Accepted Answer

The calculation described is for the Return on Assets (ROA) ratio. ROA is determined by multiplying the Profit Margin (Net Income/Revenue) by the Total Assets Turnover (Revenue/Total Assets), which gives an indication of how efficiently a company uses its assets to generate profit.

What Is Calculated as Follows A)return on Net Assets B)return on Sales Margin C)return on

What Is Calculated as Follows A)return on Net Assets
B)return on Sales Margin
C)return on