return on assets (ROA) definition

return on assets (ROA)

Ratio measuring the operating profitability of a (non-financial) firm, expressed as a percentage of the operating assets. ROA indicates a firm's ability to efficiently allocate and manage its resources but (unlike 'return on equity') ignores the firm's liabilities. Formula: Operating income x 100 ÷ Operating assets.

return on assets (ROA) is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.

return on assets (ROA) appears in the definitions of the following terms: return on total investment (ROTI), calculated intangible value (CIV) and return on total assets (ROTA)

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