Return on assets equals
A) operating income/total assets
B) operating income/sales
C) operating income/total assets.
D) sales/total assets,

Question

Quizplus · Accepted Answer

Return on assets (ROA) is calculated by dividing operating income by total assets. Option C is the only choice that correctly represents this calculation. Option A is incorrect as it is missing the calculation of return on investment. Option B is incorrect as it represents operating margin. Option D is incorrect as it represents asset turnover.

Return on Assets Equals