ROA

(noun)

The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue.

Examples of ROA in the following topics:

  • Return on Investment

    • Return on assets (ROA), return on net assets (RONA), return on capital (ROC) and return on invested capital (ROIC) are similar measures with variations on how 'investment' is defined .
    • ROI and related metrics (ROA, ROC, RONA and ROIC) provide a snapshot of profitability adjusted for the size of the investment assets tied up in the enterprise.
    • Return on assets (ROA), return on net assets (RONA), return on capital (ROC) and return on invested capital (ROIC) are similar measures with variations on how 'investment' is defined.

  • Profitability Ratios

    • Thus, its ROA = 10000 / 2500 = 4.
    • Return on Assets: The return on assets ratio (ROA) is found by dividing the net income by total assets.
    • The BEP differs from the ROA in that it includes the non-operating income.

  • Sample Evaluation

    • ROA (Return on Assets) = Net Income / Total Assets = 1,057 / 13,840 = 7.6%