Return on Assets (ROA)

Definition

The net income of the company compared to the value of its total assets: (Net Income) / (Total Assets), expressed as a % Investopedia (http://www.investopedia.com/terms/r/returnonassets.asp) define this measure as: "An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage."

Formula

Tags

idea, profit, earning, income, asset, management

Metadata

Category: Financial Ratios · Added: May 17, 2026