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How to Calculate Return on Assets: A Clear and Neutral Guide Return on assets (ROA) is a financial ratio that measures how efficiently a company uses its assets to generate profit. is a crucial metric for investors, lenders, and analysts to evaluate a company's financial performance. ROA is expressed as a percentage and is calculated by dividing net income by total assets. Calculating ROA helps investors and analysts to understand how well a company is utilizing its assets to genera
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