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Dictionary by pitch.dog
Financial ratios & operating efficiency · Core

Return on assets

Also called: ROA

ELI5

Profit divided by average or ending assets under a stated method.

Used in conversation

“Keep return on assets on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Return on assets” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.