Asked by Kaitlyn Simon on Jul 02, 2024
What is the purpose of return on assets as an analytical tool?
Return on Assets
Return on assets (ROA) is a financial ratio that indicates how profitable a company is relative to its total assets, calculating how effectively a company uses its assets to generate profit.
Analytical Tool
Instruments or techniques used to analyze or dissect financial or system data to gain insights and aid in decision making.
- Understand the aim, structure, and relevance of the balance sheet in terms of financial documentation.
Learning Objectives
- Understand the aim, structure, and relevance of the balance sheet in terms of financial documentation.