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Which ratio measures a company's profitability relative to its total assets?

Practice Questions

Q1
Which ratio measures a company's profitability relative to its total assets?
  1. Return on Equity
  2. Return on Assets
  3. Current Ratio
  4. Debt to Equity Ratio

Questions & Step-by-Step Solutions

Which ratio measures a company's profitability relative to its total assets?
  • Step 1: Understand the Question
  • Step 2: Know What 'Profitability' Means
  • Step 3: Understand 'Total Assets'
  • Step 4: Identify the Ratio
  • Step 5: Learn What ROA Tells Us
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