return on assets (ROA)

Popular Terms
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. Also called return on total investment (ROTI). Formula: Operating income x 100 รท Operating assets.

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I was afraid to check out the return on assets because I was not knowledgeable enough to look into such matters.
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The return on assets was steadily increasing quarter after quarter which proved the new managers strategy to be quite effective.
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You need to try and figure out how to get the greatest return on assets that you can and execute that plan.
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