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how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely across different industries. Return on assets gives an indication of the
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of the company, which will depend on the industry; companies that require large initial investments will generally have lower return on assets. ROAs over 5% are generally considered good.
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83:{\displaystyle \mathrm {ROA} ={\frac {\mbox{Net Income}}{\mbox{Average Total Assets}}}}
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Susan V. Crosson; Belverd E. Needles, Jr.; Belverd E. Needles; Powers, Marian (2008).
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is also used, to emphasize that average assets are used in the above formula.
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Return on assets is one of the elements used in financial analysis using the
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The percentage of how profitable a company's assets are in generating revenue
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This number tells you what the company can do with what it has,
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212:"Return on Average Assets (ROAA): Definition and How It's Used"
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137:List of business and finance abbreviations
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371:Present value of growth opportunities
291:Cyclically adjusted price-to-earnings
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337:Enterprise value/gross cash invested
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165:Weighted average return on assets
442:Risk-adjusted return on capital
95:return on average assets (ROAA)
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42:ROA can be computed as below:
27:) shows the percentage of how
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142:Rate of return on a portfolio
303:Cash return on cash invested
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424:Return on capital employed
436:Return on tangible equity
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389:Price-earnings to growth
187:Principles of accounting
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331:Enterprise value/EBITDA
343:Enterprise value/sales
239:Return On Assets - ROA
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502:Investment indicators
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412:Return on net assets
159:Return on investment
75:Average Total Assets
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297:Capitalization rate
470:Sustainable growth
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35:are in generating
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418:Return on capital
286:Buffett indicator
196:978-0-618-73661-4
153:Return on capital
107:capital intensity
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497:Financial ratios
430:Return on equity
406:Return on assets
360:Operating margin
275:Financial ratios
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131:Return on equity
119:Du Pont Identity
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320:Dividend payout
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219:. Retrieved
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31:a company's
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448:Risk return
395:Price-sales
333:(EV/EBITDA)
93:The phrase
491:Categories
345:(EV/Sales)
299:(Cap Rate)
221:2023-04-21
172:References
70:Net Income
29:profitable
339:(EV/GCI)
125:See also
476:Treynor
465:Sortino
444:(RAROC)
305:(CROCI)
37:revenue
454:Sharpe
438:(ROTE)
426:(ROCE)
414:(RONA)
379:(P/CF)
373:(PVGO)
293:(CAPE)
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167:(WARA)
33:assets
472:(SGR)
461:(SIR)
450:(RRR)
432:(ROE)
420:(ROC)
408:(ROA)
397:(P/S)
391:(PEG)
385:(P/E)
367:(P/B)
355:Omega
351:(LTV)
327:(E/P)
311:(D/E)
161:(ROI)
155:(ROC)
149:(ROB)
133:(ROE)
113:Usage
191:ISBN
102:i.e.
19:The
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267:e
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60:A
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