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.