Return on assets (ROA)

Return on assets is a measure of a company's profitability, the term is synonymous with return on total capital.

The total capital of a company is the same as the company's total assets.The performance measure used to calculate the return on assets is operating profit plus financial income.

Return on assets = (operating profit + financial income) / total assets

Total assets are either the sum of the debet side or the credit side of the balance sheet. The return on assets will contribute to yield for both lenders and shareholders.
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return on assets, return on investment, key indicators, fundamental analysis