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 Glossary   >   R   >   "Return on assets (ROA)" Definition   

        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. R.O.A. can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets).

Return on assets (ROA)


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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. R.O.A. can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets).


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. r.o.a. can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets).