Return on Assets
Also called: ROA, return on total assets
Return on assets measures profit generated per unit of assets, capturing how efficiently a company uses what it owns regardless of how it's financed. It's the middle term in DuPont analysis, and comparing it with return on equity reveals how much of the equity return comes from leverage rather than operations.
Formula
ROA = Net income ÷ Average total assets
Where this is taught
Definitions are the trailer. These free levels turn Return on Assets into something you play — one bite-size lesson, with worked examples, a quiz and XP.