Return on assets (ROA) is a measure of how efficiently a company uses the assets it owns to generate profits. Managers, analysts and investors use ROA to evaluate a company’s financial health.

Learn about Return on Assets (ROA), how to calculate it, what a good ROA is, and why it's crucial for evaluating company profitability and efficiency. ... Definition of ROA.

Learn the basics of return on assets (ROA), including a brief definition and an example calculation to help you evaluate the profit of a company.

Definition, How to Calculate & FAQ. ROA is a profitability ratio that measures a company’s use of assets in generating profits. ... Still, ROA is not as sensitive on financial leverage than ROE is.

In Feb. 2025, food industry giant McDonald's posted an ROA of 14.68, while tech company NVIDIA posted an ROA of 77.99. Comparing Liabilities ROE shows performance based on shareholder equity.

The cash return on assets (cash ROA) ... Definition, Formula, Uses, and Types. Acid-Test Ratio: Definition, Formula, and Example. Times Interest Earned Ratio: What It Is and How to Calculate .

The basic formula for return on assets is as follows: ROA = Profit / Total Assets. If you have profit of, say, $50,000, and $400,000 in total assets, then your ROA is 0.125 -- or 12.5 cents of ...