Formula
ROA
=
Net Income
Total Assets
× 100
- Net Income = Total earnings after all expenses, interest, and taxes are deducted from revenue.
- Total Assets = Everything the company owns — cash, property, equipment, and intangibles (MRQ snapshot).
Alpha Finance
Current Value TTM
Net Income
—
Total Assets
—
ROA
—
—
ROA Drivers —
Table
| Year | ROA |
|---|
Definition
Return on Assets (ROA) measures how efficiently a company uses its total assets to generate profit. A higher ROA reflects better asset utilization and operational efficiency. The ideal level depends on the industry — technology and service companies often show ROAs of 8–12% due to their asset-light models, while utilities or manufacturing firms typically achieve 3–6% because of heavy investment in fixed assets. A negative ROA means the company is generating losses relative to its asset base.
Excellent≥ 10%
Good5 – 10%
Moderate0 – 5%
Negative< 0%
AlphaAI ROA Analysis
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