Can a company have a good ROA but still face financial distress?

Feb 27, 2023 ... Issues with ROA. While ROA is a great financial ratio, there are some inherent issues with it. The largest issue among analysts and investors is ... ROA refers to a financial ratio that indicates how profitable a company is in relation to its total assets. Feb 14, 2021 ... A great advantage in the use of ratios during profitability analysis is also simplicity, since only basic financial data is needed for ... This ratio is a key indicator of a company's operational efficiency and profitability, providing insights into how well management is utilizing the ... Apr 26, 2023 ... However, credit unions rebounded in 2021 to 1.07%. While ROA is an excellent indicator of the management team's ability to generate income with ... Dec 24, 2023 ... This shows that ROE equals ROA multiplied by the financial leverage ratio. ... What is a Good ROA? A good ROA can vary significantly across ... Feb 21, 2023 ... a). The RoA and NPL ratio both seem to provide a very good indication of an increased likelihood of a DGS intervention, irrespective of the ... The return on assets ratio is given as a percentage. The higher the percentage, the more effective a company's management is in generating profits by managing ... Effective Tax Rate (ETR) is defined as the ratio of income taxes paid to pretax income. ETR is coded as missing if the absolute value of pretax in- come is less ... Dec 20, 2021 ... Formula: Return on assets ratio (%) = (Net profit ÷ Total assets) × 100. Aim for: 5% (good), 20% or higher (excellent). This varies by ...