Tuesday, July 29, 2014

Profitability Indicator Ratios: Return On Assets (ROA)

Series : Ratio Analysis    (8 th Post)

This Ratio helps us to understand how profitable a company is compared to its total Assets.The Ratio ROA (Return on Asssets) explains how efficiently a company is managing its assets to make profits.The Higher this Ratio the More efficient the Management is in utilizing its assets,The RAO is expressed as a percentage

Formula:  Return On assets % = Net Income / Average Total assets

Go to  Moneycontrol.com  Website  here is  an Online Link for the same http://www.moneycontrol.com/financials/relianceindustries/ratios/RI#RI                                       
Select the Ratios under the Financials Tab  & look for the  “Profitability Ratios “

Next Post on Ratio Analysis:  Profitability Indicator Ratios (Return On Equity)

In my quest for learning value investing I came acrros this interesting article and thought would like to share this with the community
Comments  / Improvements and points worth considering are welcome

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