Assume a company has an annual net income of $500,000, a total asset value of $10,000,000, and a total liability value of $3,000,000. Calculate the following financial ratios and interpret the results.

a) Return on Assets (ROA)
b) Debt-to-Asset Ratio
c) Gross Profit Margin

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Return on Assets ROA ROA measures a companys efficiency in generating profits from its ... View the full answer