the analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad from his desk. his weathered hands punched the buttons on his desk calculator deliberately as he divided earnings by total assets in order to calculate:

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21-10-2022
Business

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the analyst turned on his banker's lamp, adjusted his eye shade, and slowly pulled a legal pad from his desk. his weathered hands punched the buttons on his desk calculator deliberately as he divided earnings by total assets in order to calculate:

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febyyyvaalentina febyyyvaalentina · Answer 1 · 2022-10-24T19:52:21-04:00

The analyst divided earnings by total assets in order to calculate return on assets. The formula of return on assets is net income divided by total assets.

Return on assets or also known as ROA can be defined as a profitability ratio that measures how well a company is generating profits from its total assets. Return on assets is an important thing to know when investing. Investors can use Return on Assets when investing to find good stock opportunities because the percentage shows how efficient a company is at using its assets to generate profits.

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