Return on Assets (ROA)

FreightWaves Customer SuccessRetired Indices

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.