What is my return on assets?

Asset Utilisation measures

What is my return on assets? Asset utilisation ratios are used to measure the return on the assets  and capital employed in your business. They are a good measure of efficiency within a business, and to keep an eye on over time, as assets do become less effective over time.

Return on Assets (ROA)

ROA

How do you measure the value generated by your company assets? The ROA is a great of doing this, and an indicator of company asset efficiency. Please assess this over time. In Jazoodle, we assess and compare ROA across financial years as well as on an individual monthly basis.

What does it mean?

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.

How do we derive your ROA?

Definition used:

Your company’s ROA is calculated by the following:

Total Net Profit

divided by

Total Assets

How Can I Improve my ROA?

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

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

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