A growing or higher Return on Assets means that The company is efficiently using its assets resources The company is not efficiently using its assets resources The company is distributing high dividends None of the above

Accounting Jan 21, 2021

A growing or higher Return on Assets means that

The company is efficiently using its assets resources
The company is not efficiently using its assets resources
The company is distributing high dividends
None of the above

Expert Solution

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company's management is at using its assets to generate earnings. Return on assets is displayed as a percentage.

So the answer to the question is option a. Company is efficiently utilising it's asset resources

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