How should the context of a company and its industry be considered when evaluating ROA?

Apr 6, 2024 ... A good ROA varies by industry due to different asset intensities and operational models. Generally, an ROA higher than the industry average ... While the calculation shown above is effective and worth understanding, there are other (more advanced) ways in which to reflect return on assets. The advanced ... A good return on assets is in the 10% range. Anything above that is excellent and below 5% is considered harmful. A company with a ROA of 15% or higher is doing ... As with the Return on Assets (ROA) ratio, the farm business must deduct any ... If the asset turnover ratio is good, the farm should review the farm's operating ... Good ROAs operate at 5%, while higher ROAs operate at over 20%. Portfolios with high ROAs within that range or above it indicate investors are on the right ... How the Return on Assets (ROA) Ratio Works. The return on assets ratio is commonly expressed as a percentage using a company's net income and average assets. A ... Feb 23, 2023 ... While no one metric can be considered a good ROA, and estimates vary widely across industries, the consensus seems to be that a ROA of over 5% ... metrics such as ROE, ROA, or stock price. For investors seeking to construct ... The benefits of doing good: A meta-analysis of corporate philanthropy ... Generally, a higher ROA is preferable as it indicates that the company is more efficiently converting its assets into profits. Here are some general guidelines ... Apr 8, 2024 ... How to Calculate ROA; What's an Asset? What is Net Income? What is a good ROA; ROA vs similar ratios ...