Financial Ratios
Return on Assets
Definition
What is Return on Assets?
Profit divided by average total assetsThe sum of resources controlled by an entity that are expected to provide economic benefits..
Example in practice
How This Looks in Practice
₦500 million profit on ₦5 billion average assets gives 10% ROA.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.