Return on Assets (ROA)
Return on Assets (ROA) measures how effectively a company uses its assets to generate profit, calculated as net income divided by total assets.
Benefits
Return on assets (ROA) shows how effectively a company uses its assets to generate 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.
Key Takeaway
Return on assets (ROA) measures how effectively a company uses its assets to generate profit.