Financial Glossary
Return on Assets (ROA)
Net income divided by total assets — measures how efficiently a company uses all its assets.
What Is Return on Assets (ROA)?
ROA shows how well a company turns its total asset base (including debt-funded assets) into profits. Unlike ROE, it's not inflated by leverage, making it a cleaner efficiency metric.
Formula
ROA = Net Income / Total AssetsWhy It Matters
A higher ROA means the company is generating more income with less investment. Asset-heavy industries (banks, utilities) naturally have lower ROA. Compare within the same industry for meaningful insights.
Typical Ranges: Varies by industry. Above 5% is generally good. Above 10% is excellent for most sectors.
Real Examples from Our Database
CDLRCadeler A/S
0.0DVR 9.3
SOFISoFi Technologies Inc
0.0DVR 9.2
TEMTempus AI Inc
0.0DVR 9.2
ATATAtour Lifestyle Holdings Ltd
0.2DVR 9.2
QXOQXO Inc
-0.0DVR 9.1
Based on the latest data in our system. Values may change.
Related Terms
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