Return on Assets ratio is one of the profitability ratio used to determine the utilization of Assets by the company to generate profits.Higher the value of ROA better is the usage of assets to make profit. The ROA is calculated by dividing the net income with total assets of the company. Total assets figure is obtained from balance sheet of XYZ Company by adding up current assets and fixed assets, net income figure is taken from the income statement of the XYS Company.
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