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ROA is an indication of a firms profitability and sustainability. Those organizations that have a negative ROA may not be able to sustain their operations overtime.

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Q: What does a negative ROA mean?
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When it comes to equity what does it mean to have negative equity or be underwater?

The amount owed is greater than the car's worth


The Rangoon Timber Company has the following relationships SalesTotal Assets equals 2.23 ROA equals 9.69 percent ROE equals 16.4 percent What is Rangoon's Profit Margin and Debt Ratio?

What is given is: sales / total assets = 2.23 ROA = 9.69% ROE = 16.4% Find: profit margin Debt ratio ROA = Net income / total assets = (Net income/ net sales) x (net sales /total assets)) Net income / net sales = ROA / (net sales / total assets) = 0.969 / 2.23 = 0.0435 Net profit margin = net income / net sales = 0.0435 = 4.35 % ROE = net income / total equity = (net income/net sales) x (net sales/ total assets) X (total assets / total equity) Total assets / total equity = ROE / ((net income/net sales) x (net sales/ total assets)) = 0.164 / (0.0435 x 2.23) = 0.164 / 0.097 = 1.69 Equity multiplier = total assets / total equity Equity multiplier = ROE / ROA = 0.164 / 0.0969 = 1.69 Equity multiplier = 1 + debt-to-equity ratio Debto-to-equity ratio = equity multiplier - 1 = 1.69 - 1 = 0.69 Total debt ratio = debt-to-equity ratio / (1+debt-to-equity ratio) = 0.69 / (1+ 0.69) = 0.41


What does incurring the wrath of doctors mean?

Incurring the wrath of doctors is an expression used to mean that getting on the wrong side of the doctors will have dire consequences. It simply means having to deal with the negative effects of crossing doctors.


What effect does negative energy produce?

It doesn't. There's no such thing, not in scientific terms. Some people might use the phrase as a metaphor but business and politics is full of scientific, or pseudo-scientific, terms used metaphorically by people who clearly do not understand basic science! Certain forms of energy, such as electrical current, have polarities; but the negative pole of a circuit does not mean electrical energy is "negative".


Is negative 3 less than negative 1?

yes

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