LESSON (ROA)

Problem:

• Let's say your business has assets of $5,000,000 and generates a net profit of $750,000. What is your return on assets? Since return on assets = (net income / total assets) * 100, use this ratio with the given numbers.

Answer

• 15 %

Step-by-step explanation:

• return on assets or roa

($750,000/$5,000,000)*100

• so the answer in 750,000/$5,000,000 is 0.15

0.15

• there fore return on assets equal 0.15 times 100

15

• there fore the amswer is 15%