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Investing Glossary:
Return on assets (ROA)
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Definition: |
| Indicator of profitability. Determined by dividing Net income for the past 12 months by total Average assets. Result is shown as a percentage. ROA can be decomposed into return On sales (net income/sales) multiplied by Asset utilization (sales/assets).
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