Return on Assets (ROA) (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

A metric that shows how efficiently a company uses its assets to generate profit, expressed as a percentage.

What to consider

Use ROA to measure how efficiently a company uses its assets.
Compare it with industry benchmarks for perspective.
Review historical data to gauge overall performance.

Real world scenarios

Investors analyzed the company’s return on assets (ROA) to see how efficiently it was using its assets to generate profit.

Related terms

Investments & Retirement

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