Finance & Businessfreq · 1via Dusty Flow

Return on Assets

/rɪˈtɜːn ɒn ˈæsɛts/noun
ELI5 mode

Return on Assets (ROA) is a financial ratio that measures how effectively a company uses its assets to generate profit, calculated by dividing net income by total assets. It provides insight into operational efficiency and management performance, often serving as a benchmark for investors to compare companies within the same industry in today's data-driven business world.

AI-generated·

Verified sources

Your usage frequency

1 / 917