Ratios: Profit Margin x Asset Turnover = Return On Assets

14. Financial Statement Analysis / Ratios: Profit Margin x Asset Turnover = Return On Assets / Problema 10

Problema 10

Which formula is used to calculate Return on Assets (ROA)?

Net income divided by average total assets.

Total liabilities divided by total equity.

Net sales divided by net income.

Gross profit divided by net sales.