Return on AssetsView Financial Glossary Index
Return on Assets (ROA) shows the rate of return (after tax) being earned on all of the firm's assets regardless of financing structure (debt vs. equity). It is a measure of how efficiently the company is using all stakeholders' assets to earn returns.
Because ROA can differ significantly across firms, ROA is often used to compare a company over time or against companies that have similar financing structures.
YCharts calculates Return on Assets as:
ROA = Trailing 12 Month Net Income / Average of the previous 5 quarters of Total Assets