Computing and Interpreting Return on Assets Saunders, Inc., recently reported the following December 31 amounts in its financial statements (dollars in thousands):
|
Current Year |
Prior Year |
|
|
Gross profit |
$170 |
$120 |
|
Net income |
80 |
40 |
|
Total assets |
1,000 |
900 |
|
Total shareholders’ equity |
800 |
600 |
Compute return on assets for the current year. What does this ratio measure?