Trading Terms

Return on Assets

Return on assets is often used as a measure of profitability. Return on assets, or ROA, is a financial metric that evaluates a company's profitability by calculating its net earnings in relation to its total assets. As a professor of finance, I often stress the importance of ROA as it provides valuable insights into a company's financial health and performance. This ratio can be used to compare companies within the same industry and track a company's performance over time. It is a fundamental concept in finance that helps investors make informed decisions and understand a company's ability to generate profit from its assets.

Related terms

Spot Prices

Understand the meaning and definition of Spot Prices in the context of stock market, trading, and investments.

MORE
Limit Order

Understand the meaning and definition of Limit Order in the context of stock market, trading, and investments.

MORE
Conversion Arbitrage

Understand the meaning and definition of Conversion Arbitrage in the context of stock market, trading, and investments.

MORE
Step Function

Understand the meaning and definition of Step Function in the context of stock market, trading, and investments.

MORE
January Effect

Understand the meaning and definition of January Effect in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers