Return on total assets can be separated into the profit margin and total asset turnover.

Name: Return on total assets can be separated into the profit margin and total asset turnover.
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Question

Quizplus · Accepted Answer

Return on total assets (ROTA) can be calculated by multiplying two components: profit margin (net income divided by total assets) and total asset turnover (sales divided by total assets). Therefore, ROTA can be separated into profit margin and total asset turnover.

Return on Total Assets Can Be Separated into the Profit