win|比分

                                  
                                  

                                  Businessmate Site Logo

                                  Home - About - Advertise

                                  Date: 2020-06-08
                                  Search Articles by topic

                                  Mangement and Leadership

                                  Production Management


                                  Business Strategy

                                  Accounting

                                  Marketing

                                  Human Resource Management


                                  Organizational Theory & Design


                                  National and Organizational Culture

                                  Important Business Terms

                                   

                                  Article Search
                                  Search Title & Content:
                                  Search Author:

                                  Custom Search

                                   

                                   

                                   

                                   

                                   

                                  Return on Assets (ROA)

                                   
                                  Recommend this article to your friends!
                                   

                                  The financial metric Return on Assets (ROA) evaluates how efficiently a company uses its assets to generate a profit. ROA is calculated by dividing the company's total annual earnings by the total assets of the company. The financial Metric ROA is displayed as a percentage. The formula of ROA is depicted below.

                                   

                                  The formula:

                                   

                                  ROA =

                                  Net Income

                                  Total Assets

                                   

                                  The ROA figure gives investors and financial analyst some indication of how effectively companies are converting its assets, the money it holds to invest in running and developing the company, into net income. ROA should be as high as possible, which would indicate that a company is using its assets efficiently, and that the company manages to earn an acceptable profit of its assets.

                                   

                                  For instance, if company X has an annual net income of $2 million and total assets of $10 million, its ROA is 20%. In comparison, if company Y has the same annual net income but total assets of $15 million, the ROA for company Y is 13,3%. By comparing the ROA of these two companies, investors will likely see company X as a better investment, because company X consumes fewer assets to generate the same earnings as company Y.  

                                   
                                  ?
                                   
                                   
                                   
                                  Date Created: 2009-10-27
                                  Posted by: Admin
                                   
                                   
                                  Return on Assets (ROA)
                                   

                                  Related resources:

                                  Return on Investment (ROI)
                                  Return on Equity (ROE)
                                  Return on Sales (ROS)
                                  Return on Capital Employed (ROCE)
                                  Contribution Margin and Contribution Margin Ratio
                                  Reference(s)
                                   
                                  Keywords:

                                  Online MBA, Online MBA Courses, Return on Assets, ROA, example, formula, calculation

                                   






                                  Advertise on Businessmate.org


                                   
                                   

                                  Copyright © BusinessMate 2009-2019

                                   
                                  Home - About - Terms of Use - Contact - Sitemap - Privacy Policy

                                                                  
                                                                  

                                                                  image

                                                                  reading

                                                                  image

                                                                  constellation

                                                                  Second-hand housing

                                                                  news

                                                                  reading

                                                                  Finance

                                                                  Mobile phone