Every company holds assets: resources that generate economic value, measured as return on assets (ROA). Return on assets is a way to measure how much profit a company generates with the assets on its ...

One of the many metrics that investors use when evaluating a company is return on assets. The greater the return a company can achieve using a given amount of capital, the higher the valuation that ...

The only reason your business owns assets is to produce income. You measure your income in relation to your assets. This is called return on assets, or ROA. Assets like equipment directly produce ...

Businesses succeed by making money, and in general, the greater the return a company can get from the assets it has, the more successful it will be. Most businesses end up having to take on debt in ...

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.

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...

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 ...

Return on Assets is a very simple formula to find the data for and calculate. It is a great tool to compare companies in similar industries. Return on Assets can tell you how profitable a bank is and ...

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 ...

The return on assets (ROA) ratio is a financial indicator that provides insight into how efficiently a company is using its assets to generate profit. This ratio compares net income to total assets, ...

Understanding how capital-intensive a company is can be profitable. Manufacturers are typically capital-intensive, requiring costly equipment to generate earnings. Businesses with lighter business ...

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 ...