Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets).
Nearby TermsReturn if Exercised Return of capital Return on assets (ROA) Return on capital employed (ROCE) Return on equity (ROE)
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University