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Return on total assets |
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Return on total assetsA measure of how good a company is at 'squeezing' earnings out of the assets employed in its business, which is calculated as follows:Return on assets = (profit before interest and tax) / (fixed assets + current assets)If you are using this ratio to evaluate a company, you need to consider what kind of business the company is in. 'People' businesses, such as advertising agencies, need very few capital assets compared with a manufacturer which typically needs to invest large amounts in plant and equipment.In general, a return of 12% is adequate and a return of 16% or more is considered good.Return on total assetsThe ratio of earnings available to common stockholders to total assets.Return on total assets Similar MatchesTotal returnTotal returnIn performance measurement, the actual rate of return realized over some evaluation period. In fixed income analysis, the potential return that considers all three sources of return (coupon interest, interest on coupon interest, and any capital gain/loss) over some investment horizon. Expected future returnExpected future returnThe return that is expected to be earned on an asset in the future. Also called the expected return. Certainty Equivalent ReturnCertainty Equivalent ReturnThe certain (zero risk) return an investor would trade for a given (larger) return with an associated risk. For example, a particular investor might trade an uncertain expected 4% active return with 6% risk, for a certain active return of 1.5%. Consolidated tax returnConsolidated tax returnA tax return combining the reports of affiliated companies, that are at least 80% owned by a parent company. Riskless rate of returnRiskless rate of returnThe rate earned on a riskless asset. Further SuggestionsDiminishing returnsRate of return Market RRR (required rate of return) Schedule Economic rate of return joint tax return return on investment Return Average accounting return Multiple rates of return Money rate of return Cumulative total return Required return Excess return on the market portfolio Leveraged required return Return to maturity expectations Risk return trade off Return on equity (ROE) Rate Of Return External increasing returns to scale Mean return Risk return tradeoff Law of Diminishing Returns Inheritance tax return Return on assets (ROA) Compound Annual Return |
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