Return On Average Assets (Historical)

Returns the historical return on average assets (ROA) for a company. ROA measures how efficiently a company uses its assets to generate profit.

Formula

ROA = Net Income / Average Total Assets

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol
Year Yes Fiscal year or period code
Quarter No Quarter 1-4
TTM No "TTM" for trailing twelve months

Interpretation

  • Higher ROA indicates better asset efficiency
  • Compare within same industry
  • Asset-heavy industries typically have lower ROA

Examples

=hf_Return_on_Average_Assets("AAPL", 2023, 4)
Q4 2023 ROA
=hf_Return_on_Average_Assets("WMT", "ly")
Walmart last year
=hf_Return_on_Average_Assets("GOOGL", 2023, , "TTM")
TTM ROA
=hf_Return_on_Average_Assets("MSFT", 2023)*100
Convert to percentage

When to Use

  • Asset efficiency analysis
  • Industry comparisons
  • DuPont analysis components
  • Profitability assessment

When NOT to Use

Scenario Use Instead
Return on equity hf_Return_on_Average_Equity()
Return on invested capital hf_Retun_on_Invested_Capital()
Current ROA ReturnOnAssets()

Common Issues & FAQ

Q: Why is ROA low for banks? A: Banks have large asset bases (loans, securities), resulting in lower ROA.

Q: What's a good ROA? A: Varies by industry. 5%+ is generally good; 10%+ is excellent for most industries.

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MarketXLS Excel Add-in Tutorial - How to Use Return On Average Assets (ROA - Historical) and Other Financial Formulas
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