Question

The following information is provided for Oriole Company and Sheffield Corporation. (in $ millions) Oriole Company Sheffield Corporation Net income 2022 $155 $370 Net sales 2022 1365 4830 Total assets 12/31/20 1035 2270 Total assets 12/31/21 1290 3150 Total assets 12/31/22 1170 4080 What is Oriole's return on assets for 2022

Answer 1

Answer:

13.25 %

Explanation:

Return on assets measures the firm`s effectiveness in generating profit with its assets.

Return on assets = Net income / Total Assets x 100

therefore,

Oriole's return on assets for 2022 = $155 / $1170 x 100

                                                         = 13.25 %