Return on Assets ROA
How much profit a company earns for each dollar of total assets it controls, shown as a percentage.
What it is
Return on assets measures how efficiently a company uses everything it owns, its total assets, to generate profit. Unlike return on equity, it ignores how those assets were funded, treating debt and equity financing the same. It reflects the productivity of the asset base as a whole.
Why it matters
ROA shows how good management is at squeezing profit out of assets, regardless of capital structure, which makes it a useful complement to ROE. Comparing ROE to ROA reveals how much of a company's return comes from leverage: a wide gap between them signals heavy reliance on debt. The main caveat is that ROA is highly industry-dependent, since asset-light software firms naturally post far higher ROA than asset-heavy banks or utilities.
How it's calculated
Divide net income by total assets (often the average of beginning and ending total assets), expressed as a percentage.
How Quintarthai uses it
ROA is available in the profitability ratios alongside the 10-year balance sheet on a company's deep-analysis page, and can be used as a screening filter.