What are the two elements of return on assets?
A)return on equity and return on sales
B)return on equity and asset turnover
C)return on sales and asset turnover
D)return on sales and profit margin

Question

Quizplus · Accepted Answer

Return on Assets (ROA) is calculated by multiplying Return on Sales (Profit Margin) by Asset Turnover, reflecting how efficiently a company uses its assets to generate profit.

What Are the Two Elements of Return on Assets