Return on Assets (ROA)
Proxy: ROA (Percentage)
Definition & Description
Return on Assets (ROA) is an indicator of how profitable a company is relative to its total assets.
How to Use (Panel Data)
Used as a primary proxy for profitability and fundamental financial performance.
Full Explanation Article
A higher ROA indicates more efficient operational management.
Capital-intensive companies typically have lower ROA.
Related Reference Journals
- [1]Brigham, E. F., & Houston, J. F. (2019). Fundamentals of Financial Management.
Research Ideas
The effect of capital structure and governance on ROA.
Frequently Asked Questions (FAQ)
What is the difference between this proxy and regular accounting variables?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Where does the data come from to calculate this proxy?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Can this proxy be used for all industry sectors?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.