Return on total assets


Also found in: Acronyms.

Return on total assets

The ratio of earnings available to common stockholders to total assets.

Return on Total Assets

A publicly-traded company's earnings before interest and taxes, divided by its total assets, expressed as a percentage. This is a measure of how well the company is using its assets to generate earnings. A high return on total assets indicates that the company is investing wisely and is likely profitable; a low return on equity indicates the opposite.