ROA Calculator
Return on Assets Analysis
Calculate Return on Assets (ROA) to measure how efficiently your company uses its assets to generate profit. Essential metric for financial analysis and investment decisions.
Key indicator of asset utilization efficiency and management effectiveness
Calculate how efficiently your company uses assets to generate profit
Return on Assets
Very Good
Asset Efficiency
Profit per ₹100 of assets
Calculation Breakdown
ROA tells how efficiently a company uses its assets to generate profits. It reflects both profitability and asset usage. Higher ROA generally means better operational efficiency.
📈Advantages
- • Evaluates asset efficiency
- • Useful for comparing capital-intensive businesses
- • Helps investors gauge operational performance
⚠️Disadvantages
- • May not account for asset age or quality
- • Not ideal for companies with large intangible assets
- • Can be affected by accounting methods
🧠Use Cases
- • Corporate performance benchmarking
- • Investment research
- • Internal financial analysis
- • Comparing companies within same industry
Formula
Expressed as a percentage
Example Calculation
Industry Benchmarks
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