Measures a company’s ability to generate profit from its assets.
What it Measures ?
How well our assets are helping us make profit.
Relevant StakeHolders
CFO, Strategy Team
In-depth Use Case / Real-world Example
ROA is calculated by dividing net income by total assets. For example, if a company has ₹100,000 in profit and ₹1,000,000 in assets, the ROA is 10%. This metric shows how efficiently a company uses its assets to generate earnings. Higher ROA indicates better asset utilization and more efficient operations.
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