Return On Assets 5 Year Average
Returns the five-year average Return on Assets (ROA) for a company. ROA measures how efficiently a company uses its total assets to generate profits.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
ROA = Net Income / Total Assets
Interpretation
| ROA Level | Interpretation |
|---|---|
| > 10% | Excellent asset efficiency |
| 5-10% | Good asset efficiency |
| 2-5% | Average (varies by industry) |
| < 2% | Below average |
Notes
- Returns value as a decimal (0.10 = 10%)
- Asset-light companies typically have higher ROA
- Compare within same industry for meaningful analysis
Syntax
=ReturnOnAssetsFiveYearAverage(Symbol)Returns
number
Five-year average ROA as a decimal
Examples
=ReturnOnAssetsFiveYearAverage("AAPL")=ReturnOnAssetsFiveYearAverage("MSFT")=ReturnOnAssetsFiveYearAverage("WMT")Symbol from cell reference
=ReturnOnAssetsFiveYearAverage("AAPL")*100When to Use
- Assess long-term asset efficiency
- Compare asset utilization across companies
- Capital-intensive industry analysis
- DuPont analysis component
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Current ROA | ReturnOnAssets() |
| Return on equity | ReturnOnEquityFiveYearAverage() |
| Return on capital | ReturnOnCapitalFiveYearAverage() |
| Historical fundamental | hf_Return_on_Average_Assets() |
Common Issues & FAQ
Why is the value less than 1?
ROA is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.10 = 10%).
Why do banks have low ROA?
Banks are highly leveraged and asset-heavy by nature. 1-2% ROA is typical for banks, while tech companies may have 15%+ ROA.
How does ROA differ from ROE?
ROA measures profit relative to ALL assets; ROE measures profit relative to equity only. ROE is typically higher because it excludes debt-funded assets.
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