Retained Earnings/Total Assets TTM

Retained Earnings / Total Assets simply measures cumulative profitability over time (ie. retained earnings) as a proportion of total assets. If retained earnings constitute a larger (smaller) proportion of total assets, then this indicates that a company is more (less) profitable. In turn, shrinking profitability may well be be a warning sign that a firm is heading towards financial difficulties.

Stockopedia explains Retained Earnings/Total Assets

This metric measures the leverage of a firm. If retained earnings constitute a higher (lower) proportion of assets, then the firm is less (more) likely to have financed their assets through retention of profits, rather than debt. Note: the Retained Earnings figure used includes all shareholder reserves. Altman notes that these are subject to 'manipulation' via corporate quasi-reorganizations, so this could require further adjustment.

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