Fixed assets and working capital combined make up the major resources used by businesses to generate income. The ability of a company to use these resources efficiently directly affects profitability.

Return on investment ratio analysis determines a company's efficiency in investments. Simply put, it shows how profitable an investment will be. Several ratios within this category are frequently ...

The return on assets (ROA) ratio is a financial metric that helps investors and business owners assess how efficiently a company is using its assets to generate profit. By examining this ratio, ...

One of the many metrics that investors use when evaluating a company is return on assets. The greater the return a company can achieve using a given amount of capital, the higher the valuation that ...

Evaluating stocks to buy and sell can be a tricky business, even with all of the data available at your fingertips. There are dozens of ratios and metrics that give clues to the financial health of a ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

The return on assets (ROA) ratio is a financial indicator that provides insight into how efficiently a company is using its assets to generate profit. This ratio compares net income to total assets, ...