Asset and Equity Return Ratios

Asset and equity return pages explain profitability ratios that compare earnings with asset or equity bases.

These terms help analysts separate operating performance from capital intensity and balance-sheet structure.

In this section

• Return on Average Assets (ROAA): Meaning and Example
  Learn what return on average assets measures, why average assets are used instead of ending assets, and how ROAA helps compare profitability.
• Return on Average Equity (ROAE): Meaning and Example
  Learn what return on average equity measures and why analysts use average equity instead of a single end-of-period balance.
• Return on Net Assets (RONA): Meaning and Example
  Learn what return on net assets measures and why it is useful when comparing operating performance with the net asset base required to run the business.
• ROA (Return on Assets): Measuring Profitability Relative to Total Assets
  ROA (Return on Assets) is a financial metric that assesses a company's profitability relative to its total assets. It reflects how efficiently management is using the company's assets to generate earnings.