Return on Assets (ROA)
Profitability
What is Return on Assets (ROA)?
Net income divided by total assets, expressed as a percentage. Measures how efficiently a company uses its assets to generate profit.
Why Return on Assets (ROA) matters
Useful for comparing companies with different levels of leverage. Higher ROA suggests more efficient asset utilization.
Related terms in Profitability
Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.