What Are the Benefits of Normalization

question 72

Essay

What are the benefits of normalization?

---

Definitions:

Return On Total Assets

A financial metric that measures the profitability of a company relative to its total assets, indicating how efficiently a company uses its assets to generate profit.

Net Income

The amount of money that remains after all operating expenses, taxes, and costs have been subtracted from total revenues.

Net Sales

Revenue from sales reduced by customer discounts, returns, and allowances.

Held-to-Maturity Debt Securities

Financial instruments that a firm intends and is able to hold until they mature, usually recorded at cost adjusted for amortization.