The return on assets (ROA)shows percentage how profitable a company`s assets are in generating revenue. This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. It`s a useful number for comparing competing companies in the same industry. The number will.....
Return on assets:
ROA. Net income divided by total cost or value of assets. The more expensive a company's assets, the less profit the assets will generate
Profitability ratio which measures the return a company has generated through the use of its total assets.
(ROA) (ITIL Service Strategy) A measurement of the profitability of a business unit or organization. Return on assets is calculated by dividing the annual net income by the total value of assets. See also return on investment.
Return on assets, often called return on total assets, is a financial ratio that measures how efficiently and profitably a company can manage their income producing assets.