Which measure is used to evaluate profitability through return on assets?

The correct measure for evaluating profitability through return on assets is the calculation of net income divided by total assets. This metric, known as Return on Assets (ROA), illustrates how effectively a company is utilizing its assets to generate profit. A higher ROA indicates that the company is more efficient in converting its investment in assets into net income, reflecting strong financial performance.

In contrast, the other measures mentioned do not serve this specific purpose. Gross revenue divided by total revenue would not provide insight into profitability, as it doesn't account for expenses or returns. Net income divided by total liabilities focuses on a company's leverage and financial structure rather than its operational efficiency in generating earnings from assets. Total assets divided by shareholder equity pertains to the company's financial leverage and solvency rather than directly measuring profitability through asset utilization.