Which group of tactics would be most commonly used to maximize ROA? Select One A.Decrease ROS, decrease Asset Turnover, & decrease Sales B.Decrease ROS, increase Asset Turnover, & increase Sales C.Increase ROS, decrease Asset Turnover, & decrease Sales D.Increase ROS, increase Asset Turnover, & increase Sales
The group of tactics most commonly used to maximize Return on Assets (ROA) is:
D. Increase ROS, increase Asset Turnover, & increase Sales
ROA is calculated as the product of Net Profit Margin (ROS - Return on Sales) and Asset Turnover. Therefore, to maximize ROA, a company should aim to increase both its profit margin (ROS) and its asset turnover. Increasing sales is also a factor in improving ROA, as it contributes to higher asset turnover.
