Return on asset is calculated as profit divided by average total assets.

Name: Return on asset is calculated as profit divided by average total assets.
Brand: Quizplus
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Quizplus · Accepted Answer

Return on Assets (ROA) is a financial ratio that measures the profitability of a company relative to its total assets. It is calculated by dividing the company's net income (profit) by its average total assets for a period, showing how efficiently a company can manage its assets to produce profits.

Return on Asset Is Calculated as Profit Divided by Average