Rate of Return on Total Assets =Net Income / Average Total Assets.
So the denominator is Average Total Assets.
So the statement is TRUE
Question 6 The denominator of the rate of return on total assets ratio is the average...
Where do the numerator and denominator in the return on total assets ratio come from (Income statement, balance sheet, cash flow statement) ?
The denominator of the debt to total assets ratio is: A) Total fixed assets only B) Total fixed assets + total current assets C) Total current assets only D) Total assets + stockholders' liability
A company's debt ratio is computed as total assets minus total liabilities divided by total assets. TRUE/ FALSE ??
TRUE/FALSE 1) The return on total assets ratio is not a profitability measure. 1) 2) The return on total assets can be calculated as profit margin divided by total asset turnover. 2) 3) A company that has days' sales uncollected of 30 days and days' sales in inventory of 18 days implies that inventory will be converted to cash in about 12 days. 3) 4) The higher the accounts receivable turnover, the less quickly accounts receivable are collečted.4) 5) Efficiency...
4. The denominator in the formula for calculating the return on investment includes operating and nonoperating assets True False
Asset utilization ratios measure the returns on various assets such as return on total assets. A. True B. False A decreasing average collection period could be associated with A. increasing sales. B. decreasing sales. C. decreasing accounts receivable D. a and c. The main consideration in constructing the pro forma income statement is the costs specifically associated with the units sold during the period. A. True B. False As the dividend payout ratio declines more external funds are required. A....
Find the current ratio and show the numerator and denominator in ratio calculation Assets Cash Accounts Recievable $15,230 6,410 $21,640 Current Assets Land Building Furniture and Fixes Projection Equipment 25,000 34,000 60,000 26,000 2Long-term Assets 3 Total Assets $145,000 $166,640 5 Current Liabilites 6 Accounts Payable 7 Notes Payable 8 Salaries and wages pay 19 20 Total Liabilities 21 22 Owners Equity 23 Common Stock 24 Retained Earnings 25 Total Equity 26 $15,600 20,000 2,000 $37,600 60,000 69,040 129,040 27...
Gates Appliances has a return-on-assets (investment) ratio of 18 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
Gates Appliances has a return-on-assets (investment) ratio of 17 percent. a. If the debt-to-total-assets ratio is 60 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decimal places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)
Question 5 (1 point) The denominator in the formula for return on investment calculation is a) investment center average operating assets. b) sales for the period. c) dependent on the specific type of profit center. d) investment center controllable margin.