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Pak Premieum Fund

 Change Rs. -0.02 (-0.00%)

Random Financial Term

Return on Assets (ROA)

What you Need ?

Income Statement, Balance Sheet

Return on Assets = Net Income / Average Total Assets

A company buys assets (factories, equipment, etc.) in order to conduct its business. ROA tells you how good the company is at using its assets to make money. For example, if Company A reported $10,000 of net income and owns $100,000 in assets, its ROA is 10%. For ever $1 of assets it owns, it can generate $0.10 in profits each year. With ROA, higher is better.

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