ROA
Return on Assets
Short definition
ROA is net income over average total assets. It is the accounting return on the asset base; it does not isolate capital structure as ROE does.
Detailed explanation
The numerator may be net income or EBIT; the denominator includes goodwill, cash and PPE. Historical cost understates the denominator in inflation and lifts ROA. IFRS 16 inflates assets and cuts ROA.
DuPont splits ROA into margin × asset turnover. Turnover is inventory and receivable days; margin is pricing and interest. The single rate hides that split.
Why it matters for the CFO
In asset-heavy businesses ROA shows whether capital is idle. Lenders still read CFADS, not ROA; a high ROA can leave no cash.
How it is calculated
ROA = Net kâr / Ortalama toplam varlıklar
Variables in the formula
- ROA: Net income / Average total assets
How to read it
Excess cash inflates the denominator and cuts ROA; that may be idle cash, not a weak operation. A goodwill impairment lifts ROA once. Peer comparison without matching asset intensity is empty.
Numerical example
Net income 44 mn TL, average total assets 550 mn TL → ROA = 44 / 550 = 8.0%.
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Definitions are educational. They are not investment, credit or tax advice.