What is type of Operating income to total assets ratio? Leverage, Profitability, Asset composition or Liquidity? and why?
It is a measure of profitability commonly used in the Banking industry. We can exclude the other 3 answers: it does not take into account the bank's leverage (i.e. it is a measure of pre-leverage profitability), it has nothing to do with asset composition (since it is based on total assets, irrespective of their composition), and it has nothing to do with liquidity (which again would have to be based on a distinction between liquid and illiquid assets).