Chartered Financial Analyst Level 1

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Explanation:

The correct answer is A (11%) because ROA is calculated as Net Income divided by Average Total Assets. In this case, ROA = 110 / 1,000 = 11%.

Option B (13%) is incorrect as it uses Earnings Before Taxes instead of Net Income in the calculation (130 / 1,000 = 13%).
Option C (15%) is incorrect as it uses EBIT instead of Net Income in the calculation (150 / 1,000 = 15%).

This question tests the understanding of Financial Statement Analysis, specifically the calculation and interpretation of profitability ratios like ROA.

Explanation:

The correct answer is A (11%) because ROA is calculated as Net Income divided by Average Total Assets. In this case, ROA = 110 / 1,000 = 11%.

Option B (13%) is incorrect as it uses Earnings Before Taxes instead of Net Income in the calculation (130 / 1,000 = 13%).
Option C (15%) is incorrect as it uses EBIT instead of Net Income in the calculation (150 / 1,000 = 15%).

This question tests the understanding of Financial Statement Analysis, specifically the calculation and interpretation of profitability ratios like ROA.

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An analyst gathers the following financial information (in € millions) about a company:

EBIT: 150

Earnings before taxes: 130

Net income: 110

Total average assets: 1,000

Based on the provided data, the Return on Assets (ROA) is closest to:

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Last updated: July 15, 2026 at 14:06

11%.

72.7%

13%.

13.6%

15%.

13.6%

Chartered Financial Analyst Level 1

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An analyst gathers the following financial information (in € millions) about a company: EBIT: 150 Earnings before taxes: 130 Net income: 110 Total average assets: 1,000 Based on the provided data, the Return on Assets (ROA) is closest to:

Comments (0)

An analyst gathers the following financial information (in € millions) about a company:

EBIT: 150

Earnings before taxes: 130

Net income: 110

Total average assets: 1,000

Based on the provided data, the Return on Assets (ROA) is closest to: