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Reston had income of $204 million and average invested assets of $1,990 million. Its return on assets is?

Sagot :

Its return on assets is 0.1025.

Given,

Income = $204 million

Average invested assets = $1,990 million

Return on assets = Net income / total assets

= $204 million / 1,990 million

=0.1025

Therefore, Return on asset is 0.1025.

Return on assets (ROA) is a measure of how efficiently a company uses the assets it owns to generate profits. Analysts, managers, and investors use Return on assets to evaluate a company's financial health.

Net income is what the business has left over after all its expenses, including salary and wages, cost of the goods or raw material and taxes.

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