Because net income is on an after-tax basis,interest in the return on assets ratio must be placed on a before-tax basis.

Name: Because net income is on an after-tax basis,interest in the return on assets ratio must be placed on a before-tax basis.
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The return on assets (ROA) ratio is calculated using net income, which is already on an after-tax basis, and does not require adjusting interest for taxes since it focuses on the overall profitability relative to the company's total assets.

Because Net Income Is on an After-Tax Basis,interest in the Return