Return on assets, or ROA
Māori translation:
Definition
Return on Assets, or ROA, is an efficiency measure that shows how efficiently a company uses their assets to generate profit. It’s calculated by dividing a company's net income by their total assets, and is shown as a percentage.
ROA formula:
ROA shows how profitable a company is relative to their total assets. A high ROA means the company is more efficient at converting their investments into net income. A lower ROA means a company could improve.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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