Question: Understanding Return on Assets (ROA): 1. What does Return on Assets (ROA) mean? 2. Identify and describe the two primary components that make up the

Understanding Return on Assets (ROA):

1. What does Return on Assets (ROA) mean?

2. Identify and describe the two primary components that make up the ROA formula.

3. Provide an example of two companies that have the same ROA but achieve it through different means. Explain how their business models differ.

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1 Return on Assets ROA Meaning Return on Assets ROA is a financial ratio that measures a companys ability to generate profits from its assets It indic... View full answer

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