Return on total Assets:
It is a measure to evaluate the efficiency of company’s assets. It reports the profit earned as the percentage of total assets used in the business. A company’s
The formula to compute return on asset:
Cash return on assets:
It refers to the rate of cash generated from the investments in assets of company. It is relationship between the
The formula to compute cash return on assets:
To explain: The difference between the calculation of return on assets and cash return on assets, and discuss the advantages of cash based ratios.
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