Cash return on assets is a financial metric that shows how efficiently a company generates cash from its assets. It helps assess a company's profitability in utilizing its assets to generate earnings.
Cash return on assets is a financial metric that shows how efficiently a company generates cash from its assets. It indicates the amount of cash produced for each dollar invested in assets.
Return on assets (ROA) is calculated by dividing net income by average total assets. It helps assess a company's profitability in utilizing its assets to generate earnings.
For example, if a company has a net income of [tex]$100,000 and average total assets of $[/tex]500,000, the ROA would be 20% ([tex]$100,000 / $[/tex]500,000 = 0.20 or 20%).
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