ROA
Return on Assets
Profitability RatiosIndicates how efficiently a company uses its assets to generate profit. Shows how much profit is generated for every rupee of assets.
Formula
ROA = Net Income / Total Assets
Why it matters
Higher ROA means better asset utilization. Asset-light businesses typically have higher ROA. Compare within same industry.
Indian example
Related terms
Learn the concept
Profitability Ratios →From the research
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