Based on an Operating Income of $30,000 and Total Assets

question 21

Multiple Choice

Based on an operating income of $30,000 and total assets of $200,000 what would be the percent return on assets?

• A) 12
• B) 30
• C) 15
• D) 6

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Definitions:

DuPont Chart

A graphical representation used in financial analysis to display the components of the return on equity formula, helping to understand leverage, operational efficiency, and profitability.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the net profit from the investment by the cost of the investment.

Lead Indicators

Metrics that precede an event and can be used to predict future trends or performance outcomes.

Net Book Value

The value of an asset after accounting for depreciation or amortization, representing its current worth on the balance sheet.