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Q: Why does a company's Return on Assets increase?
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If Total asset increase return on equity increase or decrease?

Increase in total assets generates increase in either one of liablity account or ultimately an equity account.


The procedures designed to safeguard a companys assets and ensure efficient and appropriate account data are called?

the procedures designed to safegaurd a companys assets and ensure efficient and appropriate account data are called?


How to maintain company's return on shareholder's equity with a decline in a net profit margin?

increase the company's total assets.


Return on equity equals return on assets?

When the debt ratio is zero


How do you Compute return on assets if total assets where 500000 dollars and net income was 26000 dollars?

Return on total asset = Net Income / Total Assets return on total assets = 26000 / 500000 * 100 Return on total assets = 5.2%


Return on net operating assets calculation?

How do I calculate the return on operating assets?


Is the return on assets ratio computed by dividing net income by total assets?

Yes it is the formula for calculating return on total assets as follows: Return on total asssets = Net income / total assets * 100


What are the Average Rate of Return ARR?

Average rate of return = Net Income / Average Assets Average assets = (opening assets - closing assets) / 2


Explain how return on assets decline given an increase in net profit margin?

If you look at what Return on Assets is comprised of, Net Profit Margin and the Total Asset Turnover, if the firm is having a very slow turnover, the ROA will be declining if the turnover is greater in magnitude to the NPM.


What does return on assets mean?

Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.


Decrease in assets from purchasing companys own stock is what type of element of financial statement?

distributions to owners


Doherty Corporation had net income of 30000 net sales of 1000000 and average total assets of 500000 It's return on total assets is?

Return on total assets = net income / total assets *100 Return on total assets = 30000 / 500000 * 100 = 6%