Return On Total Assets (ROTA)

Return On Total Assets (ROTA) is a ratio that measures a company's earnings before interest and taxes (EBIT) against its total net assets.

Return On Total Assets (ROTA)

Return On Total Assets (ROTA) is a ratio that measures a company's earnings before interest and taxes (EBIT) against its total net assets.

 


Application of Return On Total Assets

The ratio is considered an indicator of how effectively a company is using its assets to generate earnings before contractual obligations must be paid.


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