Return on assets
Ratio to express the profitability of a company's assets in generating income
The return on assets (ROA) shows the percentage of how profitable a company's assets are in generating revenue. ROA can be computed as below: R O A = Net Income Average Total Assets {\displaystyle \mathrm {ROA} ={\frac {\mbox{Net Income}}{\mbox{Average Total Assets}}}} The phrase return on average assets (ROAA) is also used, to emphasize that average assets are used in the above formula.
Nº Q1163221 ★★
Uncommon · Literature
Return on assets
Ratio to express the profitability of a company's assets in generating income
The return on assets (ROA) shows the percentage of how profitable a company's assets are in generating revenue. ROA can be computed as below: R O A = Net Income Average Total Assets {\displaystyle \mathrm {ROA} ={\frac {\mbox{Net Income}}{\mbox{Average Total Assets}}}} The phrase return on average assets (ROAA) is also used, to emphasize that average assets are used in the above formula.
From Wikipedia
The return on assets (ROA) shows the percentage of how profitable a company's assets are in generating revenue. ROA can be computed as below: R O A = Net Income Average Total Assets {\displaystyle \mathrm {ROA} ={\frac {\mbox{Net Income}}{\mbox{Average Total Assets}}}} The phrase return on average assets (ROAA) is also used, to emphasize that average assets are used in the above formula. This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Return on assets gives an indication of the capital intensity of the company, which will depend on the industry; companies that require large initial investments will generally have lower return on assets. ROAs over 5% are generally considered good.
Text: Wikipédia, CC BY-SA 4.0. ·
Related cards
-
A
Asset turnover
Sales generated per dollar of assets
Nº Q1728600 ★★★
Not listed
-
F
Fixed-asset turnover
Nº Q1324559 ★★
Not listed
-
R
Return on capital employed
Used in finance as a measure of the returns that a company is realising from its capital employed
Nº Q1755687 ★
Not listed
-
Return on equity
Measure of the profitability of a business
Nº Q591174 ★★
Not listed
-
Asset
Economic resource, from which future economic benefits are expected
Nº Q46737 ★★★
Not listed
-
Retained earnings
Accumulated net income (or loss) of the corporation that is retained by the corporation
Nº Q240691 ★★
Not listed