--%>
Assignment Help - homework help

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 : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.

    		•
  • Q : Proceeds on disposal The following

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

    		•
  • Q : Small talk Define small talk and

    Define small talk and discuss its role in developing the relationship.

    		•
  • Q : Exchange rate changes decreases risk of

    Would exchange rate changes always raise the risk of the foreign investment? Explain some of the condition under which exchange rate changes can actually decrease the risk of foreign investment.

    		•
  • Q : Case study of gene expression analysis

    The paper by Golub et al. that was the focus of the second part of the BioConductor practical was the first analysis of its kind, demonstrating that gene expression analysis could potentially be used to classify leukaemia sub-types. Since its publication in 1999 there

    		•
  • Q : Types of fixed asset in accounting How

    How many kinds of fixed asset are there in accounting? What are they?

    		•
  • Q : Define sales budget Give a short

    Give a short introduction of the term “sales budget”? While preparing the sales budget what are the factors which can be taken?

    		•
  • Q : Theory of the comparative advantage How

    How theory of the comparative advantage relates to the currency swap market?

    		•
  • Q : Flexible and fixed budgets Give a brief

    Give a brief contrast between flexible and fixed budgets?

    		•
  • Q : Major reasons of current account

    In contrast to the U.S., Japan has observed constant current account surpluses. What would be the major reasons for such surpluses? Is it advantageous to have constant current account surpluses?

    		•