Swiss Group reports net income of $36,000 for 2018. At the beginning of 2018, Swiss Group had $149,000 in assets. By the end of 2018, assets had grown to $199,000. What is Swiss Group's 2018 return on assets

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Business

Brianna Serrano

1 October, 10:20

Swiss Group reports net income of $36,000 for 2018. At the beginning of 2018, Swiss Group had $149,000 in assets. By the end of 2018, assets had grown to $199,000. What is Swiss Group's 2018 return on assets

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Billy · Answer 1

0.21 times

Explanation:

The return on net assets show how well management has used the assets of the company to generate income. It is a financial ratio given as

= net income/average total assets

Average total assets = ($149,000 + $199,000) / 2

= $174,000

Return on asset = $36,000 / $174,000

= 0.21 times

This means the company's management is able to generate $0.21 for every $1 invested in assets.