Return on Assets (ROA)
Definition
A profitability ratio showing how efficiently a company uses its assets to generate earnings.
Formula / Rules
$ \text{ROA} = \frac{\text{Net Income}}{\text{Total Assets}} $
Example
$8 million net income on $100 million assets equals 8% ROA. Debt-to-Equity Ratio Category: Equity / Leverage Metric Definition: A solvency ratio comparing a company’s total liabilities to shareholders’ equity. Lower ratios indicate
Frequently Asked Question
What is Return on Assets (ROA) in trading?
A profitability ratio showing how efficiently a company uses its assets to generate earnings.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.