a-company-has-a-cash-return-on-assets-ratio-of-10-what-does-this-indicate-about-

Question

A company has a cash return on assets ratio of 10%. What does this indicate about the company's efficiency in using its assets?

Accepted Answer

The company generates $0.10 of operating cash flow for every dollar of assets.

Answer

The company generates $0.01 of operating cash flow for every dollar of assets.

Answer

The company generates $1.00 of operating cash flow for every dollar of assets.

Answer

The company generates $10 of operating cash flow for every dollar of assets.