Explain the Significance of the Return-On-Assets Ratio

question 72

Essay

Explain the significance of the return-on-assets ratio. Who (what category or type of financial statement users)would normally be most interested in this ratio, and why?

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Definitions:

Instalments

Payments made regularly over time to settle a debt or purchase, allowing for the total cost to be paid incrementally rather than as a lump sum.

Semi-Annually

Occurring or conducted twice a year, typically every six months.

Quarterly

Pertaining to a financial or business period of three months, often used in reporting financial results and performance metrics.

Liquidity Ratios

Financial metrics used to determine a company's ability to pay off its short-terms debts obligations, indicating its financial health.