Return on Assets (ROA)
factor.formula
Return on Assets (ROA):
Average total assets:
in:
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Earnings Before Interest and Taxes (Trailing Twelve Months) in the last 12 months. This indicator reflects the operating profit of the company without considering the impact of interest and taxes, and can better reflect the profitability of the company's core business.
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Average total assets. The average of the total assets at the beginning and end of the period is used to better reflect the average size of assets during the reporting period, making the calculation of ROA more representative.
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Beginning total assets refers to the total assets of the enterprise at the beginning of the reporting period.
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Total assets at the end of the period refer to the total assets of the enterprise at the end of the reporting period.
factor.explanation
Return on total assets (ROA) measures how efficiently a company uses all of its assets to generate profits. The higher the ratio, the better the company's management is able to use its assets to generate profits. ROA is an important profitability indicator that can be used to evaluate a company's overall performance and make cross-company or industry comparisons. This indicator takes into account a company's profitability and asset utilization efficiency, and is an important reference for investors and creditors to evaluate a company's operating conditions and investment value. It should be noted that different industries may have different ROA levels, so caution is needed when making cross-industry comparisons.