Definition
ROA is a financial ratio that measures a company�s ability to generate profit from its assets, calculated by dividing net income by total assets.
Related Services
Financial analysis and performance management services help businesses monitor and improve ROA by optimizing asset utilization and operational efficiency.
Problem and Application
A low ROA may indicate inefficient use of assets, suggesting that a company needs to better leverage its resources or improve profitability.
Conclusion
ROA is a key indicator of operational efficiency, helping businesses understand how effectively they are utilizing their assets to generate profits.
