Is that true? Explain. The cosceptual difference between ROA and Market to boon

Question

Is that true? Explain. The cosceptual difference between ROA and Market to boon ratio is that ROA is based on accounting measures and m/B is based on the market performance of the company Is that true? Explain. The cosceptual difference between ROA and Market to boon ratio is that ROA is based on accounting measures and m/B is based on the market performance of the company The cosceptual difference between ROA and Market to boon ratio is that ROA is based on accounting measures and m/B is based on the market performance of the company

Explanation / Answer

No, that is not true.

Return on assets ratio compares the net income of the company with respect to the book value of the assets whereas Market to Book ratio compares the market value of assets of the company with respect to the book value of the assets.

Return of assets ratio states the performance of the assets whereas market to book ratio states the growth in the value of the assets.

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