The return on assets ratio formula is calculated by dividing net income by average total assets. This ratio can also be represented as a product of theprofit marginand thetotal asset turnover. Either formula can be used to calculate the return on total assets. When using the first formula, ...
Return on assets can be dissected into identify the exact causes of a high or low ratio. ROA = Total Asset Turnover × Net Profit MarginIf a company has high ROA due to high total asset turnover, you need to make sure that the high turnover is not just due to significantly fully-...
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.
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 its total assets amount is reported on its balance sheet. Many investors prefer to average a firm’s total assets, since this...
Cash return on asset ratioCFA I FRA 为什么是CFO做分子,为什么分母要是beg and end的均值,这个ratio什么意思呢~~~ cash return就可以用CFO表示是吧 添加评论 0 0 1 个答案 Kiko_品职助教 · 2022年04月24日 嗨,爱思考的PZer你好: 这个就是ROA的现金流的形式,原来学的是ROA=NI/Asset,那现金流...
Returns or reward investment, including current income (eg revenue) and increase or decrease the value of assets (profit or asset loss). "Real rate of return an investment in securities, How investments a person show in the past. "Stock investors many factors to consider when making an ...
reward-to-risk ratio: An asset's risk premium (economic good) divided by its beta (economic bad). security market line (SML): A positively sloped straight line that displays the relationship between an asset's expected return and its beta. The riskless rate is the intercept and the market...
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 generating to the capital it’s invested in as...
It’s always best to compare the ROA of companies within the same industry because they share the same asset base. ROA factors in a company’s debt. Return on equity does not. Theresa Chiechi / Investopedia Understanding Return on Assets (ROA) Ratio ...
What Is a Good Return on Assets Ratio? In general, an ROA of 5% or less might be considered low, and an ROA over 20%, is high. However, it's best to compare the ROAs of similar companies in the same industry. For an asset-intensive company, an ROA of 5% or even 1% might be ...