Return on assets
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Return on assets are net income plus interest expense, divided by average total assets. This ratio measures a company's success in using its assets to earn income for the people who finance the business; also called rate of return on total assets.
Definitions
According to Managerial Accounting by Braun, Tietz (5th edition),
- Return on assets. Net income plus interest expense, divided by average total assets. This ratio measures a company's success in using its assets to earn income for the people who finance the business; also called rate of return on total assets.
