Compute the ROA for a company with net income of $120,000 and average total assets of $900,000. Discuss what this ratio indicates about the company’s efficiency in using its assets to generate profits. Analyze the potential factors that could influence changes in ROA, such as variations in net income, changes in asset base, and shifts in operational efficiency. Consider the impact of strategic investments, divestitures, and changes in asset utilization on the company’s ROA. Discuss the importance of ROA in assessing overall financial performance and operational effectiveness. Explain how ROA can be used to benchmark performance against industry peers and historical trends. Discuss the strategic implications of improving ROA, including optimizing asset management, enhancing profitability, and driving sustainable growth.