Profitability
What is ROA (Return on Assets)?
ROA shows how efficiently a company uses its total assets to generate profit, measuring management's effectiveness with ALL resources, not just equity.
Formula
ROA = Net Income ÷ Total Assets × 100
How to Interpret
Higher ROA means better asset efficiency. Asset-light businesses (IT, FMCG) naturally have higher ROA than capital-intensive ones (banks, infrastructure).
Typical Ranges
Above 5% is decent, above 10% is excellent. Banks typically 1-2%.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter US or Indian stocks by ROA.