Return on Assets (ROA) Definition, Functions, & How To Calculate It?



INVESTMENT, ACTIVELYSHARE.COM — Want to know how efficiently your business is performing? Use ROA calculation!

Every business wants to achieve the highest efficiency and effectiveness from a financial point of view. Ideally, the highest efficiency and effectiveness can only be achieved if the company achieves maximum profit with minimum capital. ROA is an indicator that you can use to calculate the ratio of profit and capital,

With the ROA calculation, you can compare how big the difference between the company’s profit and the nominal value of assets is in a certain period.


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