--%>

Explain Return on Assets or ROA

Return on Assets (ROA): It is an indicator of how gainful a company is associative to its net assets. ROA provides an idea as to how proficient management is at employing its assets to produce earnings. Computed by dividing a company's annual earnings by its net assets, ROA is exhibited as a percentage. Sometimes this is termed to as the "return on investment".

Formula for return on assets is as:

= Net Income/Total Assets

   Related Questions in Financial Accounting

  • Q : What is Triangular arbitrage What is

    What is meant by the Triangular arbitrage?  Explain about the condition which provides rise to opportunity of the triangular arbitrage?

  • Q : Advance methods which are used in banks

    What are the advance methods which are used in banks presently?

  • Q : Uncertainty in dollar/franc exchange

    Suppose that your company has an equity position within the French firm. Explain some of the condition under which the dollar/franc exchange rate uncertainty does not have the exchange exposure for your company.

  • Q : Explain Gross margin Explain Gross

    Explain Gross margin with their appropriate formulas?

  • Q : Define the term Equipment Define the

    Define the term Equipment in Accountancy? Why they are used?

  • Q : Analyse the ramifications for

    HOMEWORK ASSIGNMENT FOR ADMINISTRATIVE LAW"The problem in today's complex legal environment is that the law is not able to be divided conveniently into segments. Any apparently discrete sect

  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

  • Q : Restrictions of standard costing Write

    Write down the restrictions of standard costing?

  • Q : Calculate the Present Value PV Given

    Given that the appropriate discount rate is 10% and that the first of these dividend payments will occur 1 year from now, find the present value of the dividend stream; that is, calculate the PV of D1, D2, and D

  • Q : Free international trade in goods and

    Explain, how economic well-being of a country is improved through free international trade in the goods and services?