What Is a Return on Total Assets?
Return on Total Assets (ROTA in English) is another very useful ratio when analyzing the profitability of a company. It is another indicator to measure the profitability of enterprises.
Return on total assets
- Formula for calculating return on total assets
- total
- The difference and conversion of return on total assets and profit on net assets:
- Significance of ROA analysis
- The significance of total return on assets analysis is reflected in:
- (1) The return on total assets indicator reflects the relationship between asset utilization efficiency and capital utilization effect.
- (2) Under the condition that the total assets of the enterprise are constant, the return on total assets index can be used to analyze the stability and durability of corporate profits and determine the risks facing the enterprise.
- (3) The return on total assets indicator can also reflect the level of comprehensive management of the enterprise.