B
Glossary
Return on Assets
Also: ROA
Important — standard screening
What it measures
Profit squeezed from everything the company owns. Over ~5% good; banks look low, tech looks high.
Formula
Net Income ÷ Total AssetsBenchmark
> 5% healthy
Glossary
Also: ROA
Important — standard screening
Profit squeezed from everything the company owns. Over ~5% good; banks look low, tech looks high.
Net Income ÷ Total Assets> 5% healthy