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Return on assets (ROA) |
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Return on assets (ROA)Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets).Return on assets (ROA) Similar MatchesReturn to capitalReturn to capitalSame as the rental price of capital. Since capital can only be measured in monetary units, the rental price is, say, dollars per dollar's worth of capital per unit time, and it therefore has the form of a rate of return like an interest rate. Constant returns to scaleConstant returns to scaleA property of a production function such that scaling all inputs by any positive constant also scales output by the same constant. Such a function is also called homogeneous of degree one or linearly homogeneous. CRTS is a critical assumption of the H-O Model of international trade. Contrasts with increasing returns and decreasing returns. Required Rate of Return (RRR)Required Rate of Return (RRR)The minimum expected yield by investors require in order to select a particular investment. Annualized holding period returnAnnualized holding period returnThe annual rate of return that when compounded t times generates the same t-period holding return as actually occurred from period 1 to period t. Return on investmentReturn on investmentThe overall profit (or loss) on an investment expressed as a percentage of the total invested. For example: A person invests £5,000 in the shares of a company and some time later has received £100 in dividends with the value of the shares now £5,200. The return on investment is: (£100 + £5,200 - £5,000) /£5,000] x 100 = 6% Further Suggestionsjoint tax returnExpost average rate of return Expected return on investment Diminishing returns Simple rate of return Cumulative total return Return on investment (ROI) Return Safety net return internal rate of return Cash on cash return "Static" Return Geometric mean return Risk return tradeoff Unleveraged required return Pretax rate of return Riskless rate of return Average rate of return (ARR) Total return Return on equity (ROE) Expected future return Holding period return return on equity Subperiod return Rate of return |
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