Question

In: Finance

If the company's return on total assets = -0.4, what does it indicate?

If the company's return on total assets = -0.4, what does it indicate?

Solutions

Expert Solution

Please find below the solution .

Return on asset = Net income / Asset

Return on asset -0.4 means that net income is negative or the company is having losses for the period. Therefore its not doing business profitable for the given period.


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