How to Decompose ROA (Return on Assets) скачать в хорошем качестве

How to Decompose ROA (Return on Assets)

This video shows how to break a company's Return on Assets (ROA) down into two components: Profit Margin and Asset Turnover. The formula: ROA = Net Income / Average Total Assets is equivalent to saying that: ROA = Profit Margin * Asset Turnover because Profit Margin is Net Income divided by Net Sales, whereas Asset Turnover is Net Sales divided by Average Total Assets Decomposing ROA into Profit Margin and Asset Turnover is important because it tells you about a company's strategy and why its ROA is high or low relative to the company's competitors. Some companies rely on a high Profit Margin (e.g., a luxury car dealership) whereas other companies rely on high Asset Turnover (e.g., a grocery store, which doesn't make a lot of profit with each sale, but should generate a large amount of sales given its assets).— Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *  / prof_mclaughlin   — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT https://edspira.thinkific.com — LISTEN TO THE SCHEME PODCAST Apple Podcasts: https://podcasts.apple.com/us/podcast... Spotify: https://open.spotify.com/show/4WaNTqV... Website: https://www.edspira.com/podcast-2/ — GET TAX TIPS ON TIKTOK   / prof_mclaughlin   — ACCESS INDEX OF VIDEOS https://www.edspira.com/index — CONNECT WITH EDSPIRA Facebook:   / edspira   Instagram:   / edspiradotcom   LinkedIn:   / edspira   — CONNECT WITH MICHAEL Twitter:   / prof_mclaughlin   LinkedIn:   / prof-michael-mclaughlin   — ABOUT EDSPIRA AND ITS CREATOR https://www.edspira.com/about/ https://michaelmclaughlin.com