Return on assets

Definition:

Return on assets shows the after tax earnings of assets. Return on assets is an indicator of how profitable a company is. Use this ratio annually to compare a business' performance to the industry norms: The higher the ratio the greater the return on assets. However this has to be balanced against such factors as risk, sustainability and reinvestment in the business through development costs.

Related terms:

Judgments

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Loan amortization

This calculator will help you to calculate an amortisation schedule for a loan

Capital gain

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