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-   -   ROA - Writing off 25% of inventory (https://www.askmehelpdesk.com/showthread.php?t=188139)

  • Feb 25, 2008, 12:33 PM
    uskrxm40
    ROA - Writing off 25% of inventory
    How will writing off 25% of inventory during a poor financial year affect following years ROA ratio?
  • Feb 26, 2008, 10:08 AM
    SeanF138
    The equation for ROA=Net Income/Total Assets. So if you write off 25% of your assets this will cause your Total Assets to decrease and cause your ROA to increase.

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