Rolling return on total assets (ROA TTM)
factor.formula
Rolling Return on Total Assets (ROA TTM):
Average total assets:
in:
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Trailing Twelve Months Net Profit refers to the total net profit generated by the company in the past 12 months. This data uses a rolling calculation method and can more accurately reflect the company's recent profitability.
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Average total assets are calculated by taking the average of the total assets at the beginning and the end of the period. They are used to measure the total assets of a company over a certain period of time. This value can reduce the interference caused by fluctuations in asset size during the period and provide a more stable benchmark for the net profit indicator.
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Beginning total assets represents the company's total assets at the beginning of the reporting period (for example, a year or a quarter).
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Total assets at the end of the period represent the total assets of the company at the end of the reporting period.
factor.explanation
Rolling return on total assets (ROA TTM) is an indicator that measures the efficiency of a company in using all its assets (including shareholders' equity and liabilities) to create profits. It uses the net profit (TTM) of the last 12 months, which better reflects the company's most recent profitability than the traditional annual net profit. At the same time, using average total assets as the denominator can more objectively evaluate the company's profitability than using only shareholders' equity as the denominator, especially in the case of high leverage and more debt, avoiding the false profitability caused by high leverage. The higher the ROA TTM, the more efficient the company is in using assets to create profits and the stronger its profitability.