Net income divided by average total assets is:
A) Profit margin.
B) Total asset turnover.
C) Return on total assets.
D) Days' income in assets.
E) Current ratio.

Question

Quizplus · Accepted Answer

Net income divided by average total assets gives us the return on total assets (ROA) ratio, which measures a company's profitability relative to its total assets. This ratio indicates how much profit the company generates for each dollar of assets invested.

Net Income Divided by Average Total Assets Is