Return on assets is a market valuation measure.

Name: Return on assets is a market valuation measure.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Return on assets (ROA) is a profitability measure that shows how efficiently a company is using its assets to generate earnings. It is calculated as net income divided by total assets. ROA is not a market valuation measure, as it does not reflect the market's assessment of a company's value. Market valuation measures include price-to-earnings ratio, price-to-book ratio, and market capitalization.

Return on Assets Is a Market Valuation Measure