What is Return on Assets?

A definition of Return on Assets

“Return on Assets (ROA) measures a company’s ability to generate profit from its assets, indicating how efficiently management utilizes assets to produce net income.”

Return on Assets in Business Glossary - What is Return on Assets?

Business Glossary > What is Return on Assets?


Examples of Return on Assets in a Sentence:

The company’s return on assets improved significantly last year.

Investors often look at return on assets to assess management efficiency.

High return on assets can indicate effective use of the company’s resources.

Why is Return on Assets Important in Business?

Return on Assets is important because it provides insight into how well a company is using its assets to generate earnings. It helps investors and analysts understand management efficiency, comparing profitability across companies of different sizes or industries.

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Associated Terms

Here are some associated business terms and synonyms for “Return on Assets”:

  • ROA
  • Asset Profitability
  • Asset Efficiency Ratio

Apple Inc. Return on Assets

For Apple Inc., the return on assets is a key performance indicator highlighted in their annual report. The company’s innovative product lines and efficient asset management have led to a consistently strong ROA compared to its industry peers.

Final Notes on Return on Assets

When assessing a company’s return on assets, consider trends over time and compare it to industry benchmarks for a comprehensive perspective.


This has been a definition of Return on Assets meaning.

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