--%>

Explain Return on Assets or ROA

Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings by its net assets, ROA is exhibited as a percentage. Sometimes this is termed to as the "return on investment".

Formula for return on assets is as:

= Net Income/Total Assets

   Related Questions in Financial Accounting

  • Q : Services offered by international banks

    Discuss some of services which international banks offer to their customers and market place.

  • Q : Cash Discount State the definition of

    State the definition of Cash Discount?

  • Q : Fictitious Assets Define the terms

    Define the terms Fictitious Assets?

  • Q : Article on companies decision and

    Write an article on the consequences and affects of companies decison on its profitability.

  • Q : Multiplicity-Creativity as process

    Define the term Multiplicity (Creativity as process) in creative industry ? And also state the different personality traits and intellectual aptitudes which might contribute to creative thinking ?

  • Q : Case study of Espresso Tax Seattle is

    Seattle is currently considering a 10-cent tax on espresso drinks to pay for pre-school and day-care programs. The legislation’s sponsor, Rep. Burbank, argues that people who spend $3-5 on exotic espresso based coffee drinks can afford – and will be &ldquo

  • Q : Advantages and disadvantages of FDI

    State advantages and disadvantages of FDI as opposed to the licensing agreement with the foreign partner?

  • Q : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

  • Q : Meso and Macro level theories of

    Identify and elucidate three meso- and/or macro-level theories about deviance.

  • Q : A technically oriented software design

    Design: For this assignment you are to produce, one per group, a technically oriented software  design document. As the scope of the project is quite small and basically encompasses an extension to an existing