Return On Assets

Return on assets (ROA) ratio measures the net income produced by total assets during a period by comparing net income to total assets.

The return on assets ratio formula is calculated by dividing net income by average total assets.

Return on Assets = Net Income / Average Total Assets

Investors track the return on assets because it measures how well a company uses its assets to produce profits during a period.

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For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.