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The phrase return on average assets (ROAA) is also used, to emphasize that average assets are used in the above formula. [2] This number tells you what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets they control. It's a useful number for comparing competing companies in the same ...
Rate of return (RoR), also known as 'rate of profit' or sometimes just 'return', is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested; Return on assets (RoA) Return on brand (ROB) Return on capital employed (ROCE) Return on capital (RoC) Return on equity (ROE)
Return on assets (ROA ratio or Du Pont Ratio) [6] Net Income / Average Total Assets Return on assets (ROA) [15] Net Income / Total Assets Return on assets Du Pont (ROA Du Pont) [16] Net Income / Net Sales · Net Sales / Total Assets Return on Equity Du Pont (ROE Du Pont)
Investors use the return on assets ratio formula to evaluate a company. The greater a return, the higher valuation investors are likely to provide.
Return on equity (ROE) and return on assets (ROA) determine how efficient a company can be at generating profits. Both formulas that can help investors determine how good a company is at turning a ...
This is less than the purchase price, so the investment has suffered a capital loss. The first quarter holding period return is: ($98 – $100 + $1) / $100 = -1% Since the final stock price at the end of the year is $99, the annual holding period return is: ($99 ending price - $100 beginning price + $4 dividends) / $100 beginning price = 3%
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The rate of return on a portfolio can be calculated indirectly as the weighted average rate of return on the various assets within the portfolio. [3] The weights are proportional to the value of the assets within the portfolio, to take into account what portion of the portfolio each individual return represents in calculating the contribution of that asset to the return on the portfolio.