Return on assets (ROA)

Return on assets (ROA),

Definition of Return on assets (ROA):

  1. Ratio measuring the operating profitability of a (non-financial) firm, expressed as a percentage of the operating assets. ROA indicates a firms ability to efficiently allocate and manage its resources but (unlike return on equity) ignores the firms liabilities. Also called return on total investment (ROTI). Formula: Operating income x 100 ÷ Operating assets.

How to use Return on assets (ROA) in a sentence?

  1. I was afraid to check out the return on assets because I was not knowledgeable enough to look into such matters.
  2. You need to try and figure out how to get the greatest return on assets that you can and execute that plan.
  3. The return on assets was steadily increasing quarter after quarter which proved the new managers strategy to be quite effective.

Meaning of Return on assets (ROA) & Return on assets (ROA) Definition