Financial Education

Return on Assets (ROA)

Net Income / Average Total Assets

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Fundamental

Return on Assets (ROA)

Net Income / Average Total Assets

Definition

ROA measures how efficiently assets generate profits. Formula: Net Income / Average Total Assets. Higher ROA indicates better asset utilization. Useful for comparing companies across industries.

Related Topics

#profitability #asset efficiency #return measurement #comparability

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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