What is it?
ROA is calculated by dividing a company’s net income by total assets. Return on assets is expressed as a percentage.
Who is interested?
The financial community and investors.
What does it tell me?
Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a company’s management is at using its assets to generate earnings.