Examlex
Which of the following statements is true?
Return on Assets (ROA)
A financial ratio that indicates how profitable a company is relative to its total assets, calculated as net income divided by total assets.
Return on Common Equity
A financial ratio indicating the amount of net income returned as a percentage of shareholders equity, measuring a company's profitability in generating profits from its equity financing.
Long-term Debt
Borrowings and financial obligations that are due for repayment beyond the period of one year.
Current Asset Turnover Ratio
A financial metric that measures the efficiency of a company's use of its current assets by comparing its net sales to its current assets.
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