Dados B3 › Glossary

Glossary

ROA (return on assets)

How much the company earned in the year for each real of assets it owns, whether financed by debt or own capital.

What it is

How much the company earned in the year for each real of assets it owns, whether financed by debt or own capital. Shown on the stocks pages.

How Dados B3 calculates it

total consolidated net income ÷ average total assets (last year-end and this year-end).

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Profit of R$ 80 million and average total assets of R$ 1 billion: ROA = 8%.

What to watch for when reading it

• High ROE with low ROA is usually leverage, not efficiency.
• A bank has huge assets on small capital; a bank's typical ROA is low without that being a flaw.

See also

• ROE (return on equity)
• ROIC (return on invested capital)
• Asset turnover

Methodology · Guide · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.