Cash ROA (TTM)

View Financial Glossary Index

Definition

Cash ROA (TTM) is the amount of cash flow from operations (CFO) over a firm's total assets. Typically, a ROA compares net income (NI) to a firm's total assets. The difference between using CFO and NI is that CFO is harder to manipulate than NI, thus a better indicator of true return.

An increasing cash ROA means a company is generating more cash flow for every asset dollar. Differences between ROA and Cash ROA can potentially illustrate where cash flows are not increasing even when NI is increasing.

Formula

CFO (TTM) / Average Total Assets (TTM)

Are you an investing professional?

Click here to request a live demo of YCharts Professional, our premium suite of tools and data.
Learn more about our professional products. Call (866) 965-7552 or email sales@ycharts.com

Advertisement

{{root.upsell.info.feature_headline}}.

{{root.upsell.info.feature_description}}

Please note that this feature is only available as an add-on to YCharts subscriptions.


Please note that this feature requires full activation of your account and is not permitted during the free trial period.

Start My Free Trial {{root.upsell.info.call_to_action}} No credit card required.

Already a subscriber? Sign in.