Return on total assets

From CNM Wiki
Jump to: navigation, search

Return on total assets (also known by its acronym, ROA) is the ratio of net income to total assets.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Return on total assets (ROA). The ratio of net income to total assets.

According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),

Return on total assets (ROA). The ratio of net income to total assets; it measures the rate of return on the firm's assets.

Related concepts

Related lectures