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Return on assets

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Definition Edit

Return on assets (ROA) (sometimes referred to as return on investment) is

[a]n indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage.[1]

References Edit

  1. Smart Grid Information Clearinghouse, "Acronyms" (full-text).

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