Interpretation of Return on Assets (ROA) Return on assets is a measure of how effectively a company uses its assets. Higher is this figure, the better is the utilization of the company’s assets. E.g., a company may earn profits worth 1 million with an investment of 10 million, giving ...
1) An Interpretation of Return on Assets 资产收益率解析 2) ROA 资产收益率 1. We show that the return on assets (ROA) and firm diversification are negatively related. 本文以2002年深沪两市的1032家非金融公司作为样本,选用资产收益率和托宾Q值作为公司绩效的衡量指标,就多元化对企业的影响进行实证检验...
Return on Assets (ROA) Calculator Example Interpretation & Analysis Cautions & Further Explanation 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 ne...
Return on Capital Employed0.43510.1547EBIT/Capital Employed As you can see, Sam & Co. is a much larger business than ACE Corp., with higher revenue, EBIT, and total assets. However, when using the ROCE metric, you can see that ACE Corp. is more efficiently generating profit from its cap...
Return on operating assets (ROOA) is an efficiency financial ratio that calculates the percentage return a company earns from investing money in assets used in its operating activities. In other words, this is the percentage profit that a company can exp
This is a detailed guide on how to calculate Return on Operating Assets (ROOA) with thorough interpretation, example, and analysis. You will learn how to use this ratio formula to assess a company's profitability. Definition - What is Return on Operating Assets? The return on operating ...
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. ...
Return On Assets (ROAReturn On Equity (ROEstandard D/E mixA lot of finance textbooks present calculation of WACC (Weighted Average Cost of Capital) as: WACC = Kd - (1 -/- T)- D % + Ke - E %, whereas Kd is opportunity cost of debt before taxes, T is tax rate, D % is ...
6) An Interpretation of Return on Assets 资产收益率解析补充资料:收益 企业在一定时期全部收入超过全部成本费用支出和损失的剩余数额,表现为企业净资产的增加. 说明:补充资料仅用于学习参考,请勿用于其它任何用途。参考词条周收益率 吨收益率 收益速率 全收益率 ...
You may also hear ROE referred to as “return on net assets.” Return on Equity Interpretation A high ROE suggests that a company’s management team is more efficient when it comes to utilizing investment financing to grow their business (and is more likely to provide better returns to invest...