Question: Return on Assets (ROA) Calculation : Calculate the return on assets (ROA) for a company with net income of $120,000 and average total assets of

  1. Return on Assets (ROA) Calculation: Calculate the return on assets (ROA) for a company with net income of $120,000 and average total assets of $800,000. What does this ratio indicate about the company's efficiency in using its assets to generate profits?

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