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Return on assets is often stated in ratio form as the amount of income divided by assets invested.
Return On Assets
This ratio indicates how efficiently a company uses its assets to generate profit, calculated as net income divided by total assets.
Ratio Form
A presentation format for financial statements or equations where components are displayed as a proportion of a whole.
Assets Invested
The total value of physical and financial assets that have been allocated or deployed in various investments by an individual or organization.
- Discover the approach to measure and interpret the return on assets.
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Learning Objectives
- Discover the approach to measure and interpret the return on assets.
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