Friday, February 18, 2011

Return on Assets:


Return on Assets:

            Return on Assets ratio is the measurement of the assets utilization to produce the revenue of the business. The ratio could be calculated by dividing the net income (net Profit) of the company with average assets. The ratio depicts that is the company utilizing its assets efficiently or not higher the ratio means that the firm is obtaining the optimum level of production the lower the ratio means that firm is not managing the assets in an efficient manner.
Return On Assets =
Net Profit
Total Assets

1 comment:

Books and Profits said...

Thanks for sharing this information, this is useful to me...
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