The profit or return generated by your total assets (current and fixed). Assets are capital, equipment or other items that are used in order to develop or generate revenues. For our measure, we assess returns net of accounting choices or one-off incomes and expenses as well as depreciation.

Check your return on assets with Jazoodle now.

Definition used:

Your company’s ROA is calculated by the following:

Earnings Before Interest, Tax And Depreciation

divided by

Total Assets

Your ROA can be improved in a number of ways, these including:

• Manage your asset base accordingly
• Increase sales revenues without a similar increase in assets
• Invest in more profitable asset classes or equipment
• Invest in process efficiencies internally