What is ROA? What investors need to know to choose good stocks

2025-12-24 14:22:24

Abstract generation in progress

ROA (Return on Assets) What is it?

ROA or Return on Assets is a financial indicator that shows how effectively a company uses its resources by comparing net income (Net Income) with total assets (Total Assets)

Simply put, ROA indicates how many baht of income a company can generate from every 100 baht of resources. It’s like measuring the efficiency of whether the company’s owner uses money wisely or wastefully.

That’s why investors pay close attention to ROA because:

This indicator provides genuine information about the company’s quality
Helps assess whether management is handling money well or poorly
Can be used to compare different companies within the same industry

Easy way to calculate ROA

Calculation formula

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.