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Return on assets (ROA) is a measure of how efficiently a company uses the assets it owns to generate profits. Managers, analysts and investors use ROA to evaluate a company’s financial health. Return ...

ROA measures profit relative to a company's total assets; higher ROA indicates better financial efficiency. ROA is calculated with either net income and total assets or with net profit margin and ...

Fixed assets and working capital combined make up the major resources used by businesses to generate income. The ability of a company to use these resources efficiently directly affects profitability.

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Return on assets (ROA) is used in fundamental analysis to determine the ...

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

Jeff Bartel is chairman and managing director of Hamptons Group, a private investment and strategic advisory firm headquartered in Miami. Knowing a bank’s performance is essential for potential ...

Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources. It is commonly defined as net income divided by total assets. Net ...