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Why does ROA use net income?

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Why does ROA use net income?lakaSeptember 27, 2020 - 7:36pm

I understand that ROE uses net income because the net income is available to shareholders (equity). But ROA is regarding assets, so shouldn’t the return on assets be a pre-interest figure? If we wanted to use net income, we should exclude liabilities and use the equity which is what ROE is...


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