Return on Average Assets TTM

The Return on Average Assets, or ROA, is a measure of how efficiently a company is using its assets to generate income. It is calculated by dividing a company's annual earnings by its average total assets. This is measured on a TTM basis.

Stockopedia explains ROA

This takes a company’s net profit and divides it by the total assets of the company to produce a measure of how efficiently assets are being used by the management team. For example, if a company has profits of £1m and £10m of assets on its balance sheet, the the ROA is calculated as 10%.

Assets are ultimately obtained from two potential sources of financing, debt and equity. The ROA looks to measure the performance of the company with respect to all assets, regardless of how they were obtained. A high figure often means that the company has a defensible edge versus its competitors (e.g. a strong brand or a unique product). The metric can be more useful than measures of return against equity if debt constitutes a significant part of a company’s balance sheet.

This is measured on a TTM basis.

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The 5 highest ROA Stocks in the Market

Ticker Name ROA StockRank
ASX:TUL Tulla Resources 646.42 37
NYQ:SBR Sabine Royalty Trust 427.81 48
NAQ:NCTY The9 345.1 23
NYQ:PBT Permian Basin Royalty Trust 272.06 47
ASX:DRR Deterra Royalties 184.34 48
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