Return on total assets
Also found in: Acronyms.
Return on total assets
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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