To Study Changes in ROA, the Analyst Can Disaggregate ROA

question 73

Multiple Choice

To study changes in ROA, the analyst can disaggregate ROA into the product of two other ratios:

• A)the gross profit for ROA ratio and the total assets turnover ratio.
• B)the profit margin for ROA ratio and the inventory turnover ratio
• C)the gross margin for ROA ratio and the inventory turnover ratio.
• D)the profit margin for ROA ratio and the total assets turnover ratio
• E)the gross margin for ROA ratio and the total assets turnover ratio.

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Definitions:

Y

In Cartesian coordinates, the vertical axis or the value that represents vertical position.

Expression

A combination of symbols and operators in mathematics that represents a specific value.

Simplify

The act of minimizing complexity in a mathematical expression by executing permitted operations.

Expression

A combination of numbers, symbols, and operations used to represent a value, without an equivalence relation.