Return on Assets is a way to measure how profitable a company is relative to its total assets. It shows how much net income a company earns for every dollar of assets it owns. Assets are the resources that a company uses to operate its business, such as cash, inventory, equipment, and intellectual property. Return on Assets can help managers, analysts, and investors evaluate how efficiently a company uses its assets to generate earnings. The formula for Return on Assets is:
Return on Assets = (TTM Net Income / Average Total Assets) * 100
Where:
- TTM Net Income is TM002,
ttm_net_inc
- Average Total Assets is BS036,
bs_tot_asset