The return on assets ratio, often called the return on total assets, is a profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.
ROA Formula / Return on Assets Calculation Return on Assets (ROA) is a type ofreturn on investment (ROI)metric that measures the profitability of a business in relation to itstotal assets. This ratio indicates how well a company is performing by comparing the profit (net income) it’s gener...
Formula So what is the return on asset formula? You can easily calculate a company’s ROA by using the following equation: Return on Total Asset Ratio = Net Income / Total Assets A company’s net, after-tax income can usually be found on its income statement for a given period, while ...
Return on total assets (ROTA) is one of the profitability indicators that measures how efficiently the firm manages its assets to earn profits. Its formula is a simple ratio of the Operating Profit to the Average Assets of the return on total assets ratiodetermines companies that are using thei...
Return on assets (ROA) is a profitability ratio that helps determine how efficiently a company uses its assets. It is the ratio of net income after tax to total assets. In other words, ROA is an efficiency metric explaining how efficiently and effectivel
RETURN ON ASSETS DefinitionRETURN ON ASSETS (ROA) shows the after tax earnings of assets. Return on assets is an indicator of how profitable a company is. Use this ratio annually to compare a business performance to the industry norms: The higher the ratio the greater the return on assets....
The Return on Net Assets (RONA) is a performance ratio, which compares the income generated by a business and the fixed assets used to generate the income. Hence, it measures the efficiency of a company in generating returns on the assets it owns.
Find out what return on assets ratio is, its importance, how to calculate it, and see an example of how it's used in business. Read here to learn more.
The return on net assets (RONA) ratio, a measure of financial performance, is an alternative metric to the traditional return on assets ratio.
Return on assets (ROA) is a ratio that indicates a company’s profitability relative to its total assets. ROA can be used by management, analysts, and investors to determine whether a company uses its assets efficiently to generate a profit. ...