MANAGEMENT

Detailed explanation-1: -The return on total assets ratio is a key ratio used to assess your company’s profitability. Other profitability ratios include return on shareholders’ equity, gross profit margin, return on common equity, net profit margin and return on equity.

Detailed explanation-2: -The term return on assets (ROA) refers to a financial ratio that indicates how profitable a company is in relation to its total assets. Corporate management, analysts, and investors can use ROA to determine how efficiently a company uses its assets to generate a profit.

Detailed explanation-3: -Return on assets is a profitability ratio that provides how much profit a company can generate from its assets. In other words, return on assets (ROA) measures how efficient a company’s management is in earning a profit from their economic resources or assets on their balance sheet.

Detailed explanation-4: -Return on Assets Formula (ROA) The return on assets (ROA) metric is calculated using the following formula, wherein a company’s net income is divided by its average total assets.

Detailed explanation-5: -The difference between ROI and ROA is what they measure. ROI expresses the return on financial investment, while ROA measures how effectively a business uses its total or average assets. And both are commonly used to measure a company’s efficiency.