returnonassets

return on assets

return on assets is a financial ratio that measures a company's profitability by evaluating the efficiency with which it utilizes its assets to generate earnings.

Noun

1. return on assets (finance): a financial ratio that indicates the profitability of a company by comparing its net income to its total assets.

Adjective

1. return on assets (finance): pertaining to or relating to the measurement of a company's profitability in relation to its assets.

Distinction

return on assets is both a noun and an adjective that specifically pertains to the financial field, particularly in the context of evaluating a company's profitability.

Word Expansion

Related terms:

• Return on investment
• Return on equity
• Return on capital
• Return on sales
• Return on investment ratio

Synonyms

No synonyms found.

Antonyms

No antonyms found.

Collins Dictionary

No specific entry for "return on assets" found in Collins Dictionary.

Oxford Dictionary

No specific entry for "return on assets" found in Oxford Dictionary.

Usage

The term "return on assets" is commonly used in the financial and accounting fields to assess a company's profitability and efficiency. It is calculated by dividing net income by total assets and is expressed as a percentage. A higher return on assets indicates better utilization of assets to generate profits.

Examples

1. The company's return on assets improved significantly, indicating better profitability.
2. Investors often consider the return on assets when assessing the financial health of a company.
3. A higher return on assets signifies efficient utilization of resources to generate earnings.
4. The management team aims to increase the company's return on assets through strategic investments.
5. Compared to its competitors, the company has a lower return on assets, indicating potential inefficiencies in its operations.
6. The return on assets ratio helps investors determine the company's ability to generate profits from its available assets.
7. Improving the company's return on assets requires optimizing operational efficiency and increasing revenue.
8. The company's return on assets has been steadily declining, raising concerns among shareholders.
9. When analyzing financial statements, it is essential to consider the return on assets as an important performance indicator.
10. A low return on assets may indicate poor management decisions or underutilization of company resources.
11. The company's strong return on assets demonstrates its ability to generate profits from invested capital.
12. Comparing the return on assets of different companies can provide insight into their relative profitability and efficiency.
13. Investors often look for a consistent and positive trend in a company's return on assets over time.
14. A higher return on assets can attract potential investors and improve a company's access to capital.
15. The return on assets ratio is one of the key metrics used by financial analysts to evaluate a company's performance.
16. Management is focused on optimizing the company's operations to achieve a higher return on assets.
17. When making investment decisions, it is important to consider not only the potential return on equity but also the return on assets.
18. Efforts to streamline processes and reduce operational costs have positively impacted the company's return on assets.
19. The company's return on assets is significantly higher than the industry average, indicating its strong financial position.
20. Analysts are closely monitoring the company's return on assets as an indicator of its long-term sustainability.