52. _________________________ is how well the company is operating: is it genera

Question

52. _________________________ is how well the company is operating: is it generating a profit? Are revenues growing? Are expenses being controlled and well managed? Describe the following calculations and ratios that support this analysis. Earning Per Share "EPS" Asset Turnover Ratio Return on Total Assets Return on Equity Price Earnings Ratio 52. _________________________ is how well the company is operating: is it generating a profit? Are revenues growing? Are expenses being controlled and well managed? Describe the following calculations and ratios that support this analysis. Earning Per Share "EPS" Asset Turnover Ratio Return on Total Assets Return on Equity Price Earnings Ratio

Explanation / Answer

Answer: Return on Total Assets

The return on assets (ROA) is one of the most widely used profitability ratios because it is related to both profit margin and asset turnover, and shows the rate of return for both creditors and investors of the company. ROA shows how well a company controls its costs and utilizes its resources.

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