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You are evaluating the asset utilization of two telecommunications companies, TelCom and ConnectX, to assess their operational efficiency. Requirements: TelCom generated a net income of
You are evaluating the asset utilization of two telecommunications companies, TelCom and ConnectX, to assess their operational efficiency.
Requirements:
- TelCom generated a net income of $40 million with total assets of $400 million for the fiscal year 2023. ConnectX reported a net income of $50 million with total assets of $500 million during the same period.
- Calculate the return on assets (ROA) for both companies.
- Analyze which company generates a higher return relative to its total assets.
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