How to Calculate Return on Assets (ROA)?

This efficiency measure shows how well an operations management team uses its assets to generate profit. It takes into account all assets, including current as well as fixed ones such that it can calculate their return on average equity capital (ROA) and provide this information in comparison with other companies or organizations within a similar industry sector to assess ifthere's any room for improvement when looking at overall balance sheet healthiness. The formula is: Return on assets = Net income / Total assets for period

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