Return on Assets (ROA)
Content
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.
