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Miscellaneous Information

ROA (Return On Assets)

Return on assets (ROA) is a financial ratio that shows the percentage of profit that a company earns in relation to its overall resources (total assets). Return on assets is a key profitability ratio which measures the amount of profit made by a company per dollar of its assets. It shows the company's ability to generate profits before leverage, rather than by using leverage.

Calculation different kind of ROA : 

 ROA = EBIT / Assets

 ROA = EAT/ Assets

 ROA = EBIT x (1-t) / Assets

 ROA = EAT + Úroky x (1 - t) / Assets

where: t  = income tax rate.

The most complex is a form of calculation with EBIT, appropriate namely when is changing income tax in time, structure of financing or when compare companies with different structure of financing. ROA is used mostly as complementary rate in financial analysis of accounting ratios.