Which ratio measures a firm's performance in using assets to generate earnings independent of how the firm financed acquisition of those assets?
A)rate of return on assets
B)rate of return on common stockholders' equity
C)earnings per share of common stock
D)rate of return on preferred stockholders' equity
E)none of the above

Question

Quizplus · Accepted Answer

Rate of return on assets (ROA) is a ratio that measures a firm's performance in generating earnings from its assets, regardless of how those assets were financed. It is calculated as net income divided by total assets. This ratio is useful in comparing the efficiency of different companies in using their assets to generate profits.

Which Ratio Measures a Firm's Performance in Using Assets to Generate