Which ratio measures a company's profitability relative to its total assets?
Practice Questions
1 question
Q1
Which ratio measures a company's profitability relative to its total assets?
Return on Equity
Return on Assets
Current Ratio
Debt to Equity Ratio
Return on Assets (ROA) measures a company's profitability relative to its total assets, showing how efficiently assets are used to generate profit.
Questions & Step-by-step Solutions
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Q
Q: Which ratio measures a company's profitability relative to its total assets?
Solution: Return on Assets (ROA) measures a company's profitability relative to its total assets, showing how efficiently assets are used to generate profit.