Return on assets (ROA),
Definition of Return on assets (ROA):
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?
- I was afraid to check out the return on assets because I was not knowledgeable enough to look into such matters.
- You need to try and figure out how to get the greatest return on assets that you can and execute that plan.
- 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