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      • Return on assets of a company is defined to be the net income of the company (over the last 12 months) divided by the companys total assets (averaged over the last 12 months). The ROA equation is used to determine how effectively a company utilizes its assets in producing profits, which assists investors in analyzing a businesss finances.

      Return on Assets (ROA): Definition, Formula, & More - Public.com

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  3. corporatefinanceinstitute.com › resourcesReturn on Assets & ROA Formula - Corporate Finance Institute

    Return on Assets (ROA) is a type of return on investment (ROI) metric that measures the profitability of a business in relation to its total assets. This ratio indicates how well a company is performing by comparing the profit ( net income ) it’s generating to the capital it’s invested in assets.

  4. www.investopedia.com › terms › rReturn on Assets (ROA): Formula and "Good" ROA Defined

    Jan 28, 2024 · The term “return on assets” (ROA) refers to a financial ratio that indicates how profitable a company is in relation to its total assets. Corporate management, analysts, and investors can use...

    • Marshall Hargrave
    • 2 min

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  6. accountingverse.com › return-on-assetsReturn on Assets (ROA) - Formula, Example, and Interpretation

    The return on assets is a cross-financial statement ratio. It makes use of “net income” derived from the income statement and “total assets” obtained from the balance sheet. The formula for return on assets is: Net Income ÷ Average total assets.

  7. www.financestrategists.com › wealth-managementReturn on Assets (ROA) Ratio | Definition, Formula, and Example

    Jun 8, 2021 · Return on assets, or ROA, is a metric used to evaluate how efficiently a company is able to generate profit with the assets it has available. How do I calculate ROA? Return on Assets is calculated by divided a company's net income by its total assets.

  8. www.bench.co › blog › accountingUnderstanding Return on Assets (ROA) in Business Finance

    The purpose of return on assets is to understand the profit a business generates as a percentage of its total assets. If a company generates a higher ROA, that company is considered more efficient at turning its investments into profit.

  9. www.investopedia.com › ask › answersHow to Calculate Return on Assets (ROA) With Examples

    Jun 24, 2024 · Return on assets is a profitability ratio that provides how much profit a company is able to generate from its assets. Return on assets (ROA) measures how efficient a company’s management is in...

  10. www.wallstreetprep.com › return-on-assets-roaReturn on Assets (ROA) | Formula + Calculator - Wall Street Prep

    Mar 13, 2024 · The Return on Assets (ROA) is a profitability ratio that reflects the efficiency at which a company utilizes its total assets to generate more net earnings, expressed as a percentage.

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