return on assets (ROA)

  

Definition

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 √∑ 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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