Rushing had net income of $240 million and average total assets of $2,000 million.Its return on assets is:

A) 12%.
B) 120%.
C) 80%.
D) 8%.
E) 800%.

Return on Assets

A financial ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.

Net Income

The net earnings of a company following the deduction of all costs, such as taxes and operational expenses, from its overall income.

Total Assets

The sum of everything an organization owns, both current and noncurrent, that can be used to generate value.