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what might be a major flaw (depending on the company) with using the ROA. Hint: it has to do with the Assets from the balance
what might be a major flaw (depending on the company) with using the ROA. Hint: it has to do with the Assets from the balance sheet."
Only a couple replied -- here are some further hints - remember, ROA is calculated from the Booked value of assets in the balance sheet. Some specific areas of concern -- how is land valued on the books, how are depreciated assets valued on the books, intangible assets are another concern. Are these assets on the books really reflective of the true value of the assets?
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