Financial Statement Analysis Magazine Section

Ratio - Return on Assets

Return on Assets RatioRETURN ON ASSETS (ROA):                                                                           onlinecalculator iconOnline Return on Assets Ratio Calculator

The Return on Assets (ROA) of a company determines its ability to utitize the Assets employed in the company efficiently and effectively to earn a good return. The ratio measures the percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the company in generating profits on its Assets.

The formula:

Return on Assets = (Net Profit / Total Assets) x 100

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