Respuesta :
The statement stated above is true. The return on assets is computed by dividing the net income earned by the company by the average total assets employed by the company. It measures how much percentage of profit the company is generating with respect to its assets.
What do you mean by assets?
Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting. Anything that has the potential to provide positive economic value qualifies. The ownership value that can be turned into cash is represented by assets.
A measure of a company's profitability in relation to its total assets is called return on assets. Management, analysts, and investors can use ROA to assess how effectively a company uses its resources to make a profit. By dividing a company's net income by all of its assets, you may get its ROA.
The return on assets is calculated by dividing the company's net income by its average total assets under management. It determines what proportion of profits the business is making in relation to its assets.
To learn more about assets refer to:
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