Return on Assets (ROA)

Definition

Return on Assets (ROA) measures how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.

Usage and Context

Return on assets (ROA) shows how well a company uses its assets to make a profit.

Frequently Asked Questions

What does a company's ROA measure?
ROA (Return on Assets) shows how well a company is using its assets to generate profit.

Which return on assets measures how well a company uses its assets to generate _________?
Return on Assets (ROA) measures how well a company uses its assets to generate profit.

What is the return on assets?
Return on assets (ROA) measures how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.

Benefits

Return on assets (ROA) shows how effectively a company uses its assets to generate profit.

Conclusion

Return on assets (ROA) measures how effectively a company uses its assets to generate profit.