Examlex
Which of the following is the formula for accounting rate of return?
Return On Assets Ratio
A financial metric measuring how efficiently a company generates profit from its assets, calculated as net income divided by total assets.
Return On Common Shareholders' Equity Ratio
A financial metric that measures the profitability attributable to shareholders by comparing net income to common equity.
Debt To Total Assets Ratio
A financial ratio that measures the percentage of a company's assets financed by creditors through debt, indicating financial leverage.
Leverage
The use of borrowed funds to increase the potential return of an investment.
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