RETURN ON ASSETS (ROA) shows the after tax earnings of assets. Return on assets is an indicator of how profitable a company is. Use this ratio annually to compare a business performance to the industry norms: The higher the ratio the greater the return on assets. However this has to be balanced against such factors as risk, sustainability and reinvestment in the business through development costs.
Higher ROA is better, but extremely high ROA may be an indicator of vulnerability as to any sustainable competitive advantage.
Formula: Earnings After Tax (EAITDA) / Total Assets
NEGATIVE DOLLAR is a dollar that is owed to another entity.
SALES ALLOWANCE is an offer of a lower price as an inducement to the buyer to accept delivery under special circumstances, e.g. when the merchandise delivered is not exactly what was ordered.
Enter a term, then click the entry you would like to view.