Asked by Susana Guerrero on Jul 28, 2024
Verified
Return on assets is defined as EBI divided by total year-end assets.
Return on Assets
A performance metric that measures the profitability of a company relative to its total assets.
- Understand the definitions and calculations of key financial metrics, such as return on assets and asset turnover.
Verified Answer
IP
Isabel PinheiroAug 02, 2024
Final Answer :
False
Explanation :
Return on assets is defined as net income divided by total year-end assets. EBI stands for Earnings Before Interest and Taxes, which is not the correct measure for calculating return on assets.
Learning Objectives
- Understand the definitions and calculations of key financial metrics, such as return on assets and asset turnover.
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