Return on Assets (ROA)
A financial metric that shows how profitable a company is in relation to its total assets.
Profit after taxes.
Sum of current and fixed assets from balance sheet.
Return on Assets (ROA)
10.00%
How to interpret ROA
- It tells you what earnings were generated from invested capital (assets).
- Higher is better: A higher ROA means the company is more "asset-efficient".
- Benchmark matters: ROA varies wildly by industry. Software companies (low assets) naturally have higher ROA than heavy manufacturing companies (high machinery assets). Compare only against industry peers!