Return On Assets (ROA)
Returns the Return on Assets for a company, which measures how efficiently management uses assets to generate earnings.
ROA = Net Income / Total Assets
Interpretation
| Range | Interpretation |
|---|---|
| > 15% | Excellent asset efficiency |
| 10% - 15% | Good efficiency |
| 5% - 10% | Average efficiency |
| < 5% | Low efficiency or asset-intensive industry |
Industry Considerations
| Industry | Typical ROA |
|---|---|
| Technology | 10-25% |
| Consumer goods | 8-15% |
| Banks | 0.5-2% |
| Utilities | 2-5% |
Notes
- Asset-heavy industries (banks, utilities) typically have lower ROA
- Compare within the same industry for meaningful analysis
- Consider alongside ROE for complete picture
Syntax
=ReturnOnAssets(Symbol)Returns
Return on assets as a decimal (e.g., 0.15 = 15%)
Examples
=ReturnOnAssets("AAPL")=ReturnOnAssets("MSFT")=ReturnOnAssets("JPM")=ReturnOnAssets(A1)=ReturnOnAssets("AAPL")*100When to Use
- Evaluating management efficiency
- Comparing companies in the same industry
- Screening for efficient capital allocation
- Asset-intensive industry analysis
- Understanding profitability drivers
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Shareholder return analysis | ReturnOnEquity() |
| Capital allocation efficiency | ReturnOnInvestedCapitalOneYear() |
| Historical ROA data | hf_ReturnOnAssets() |
| Operating profitability | operating_margin() |
Common Issues & FAQ
Why do banks have such low ROA?
Banks are highly leveraged, holding vast assets relative to equity. A 1% ROA for a bank is considered good because leverage amplifies returns to shareholders.
What's the difference between ROA and ROE?
ROA measures profit relative to total assets. ROE measures profit relative to shareholder equity. Companies with high debt have much higher ROE than ROA.
Why is ROA returned as a decimal?
The value is a decimal (e.g., 0.15 = 15%). Multiply by 100 for percentage format.
Related Formulas
More MarketXLS Key Ratios formulas you can use in the same worksheet:
- Return On Capital (Last 12 Months)
- Return On Equity (Last 12 Months)
- Return on Invested Capital (Current Quarter)
- Revenue
- Revenue Per Share
- Revenue Per Share Five Years
- Revenue Per Share Three Years
- Total Cash
See ReturnOnAssets used in a complete workbook: Consumer Credit Stocks Screener Excel: Tracking Lender Health as Card Debt Tops $1.25 Trillion (July 2026)
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