What are the potential trade-offs between reinvesting earnings to improve ROA and returning cash to shareholders?

Nov 14, 2017 ... Historically speaking, a ratio of 1% or greater has been considered pretty good. But this ratio will fluctuate with the prevailing economic ... Aug 30, 2023 ... Typically, a 'good' ROA for a company could be anything between 5% and 20%. You might find that a company in one sector, such as an industrial ... What is a good ROA ratio? The higher the ROA of a company, the higher its profit generation. A good ROA can be anywhere between 5% and 20%. A 5% ROA is ... 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 ... This ratio is a key indicator of a company's operational efficiency and profitability, providing insights into how well management is utilizing the ... 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 ... 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 ... 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 ... How to Analyze the Return on Assets (ROA) Ratio. Analyzing the Return on ... A good ROA typically exceeds 5%, with anything over 20% considered excellent. May 15, 2016 ... Loan-to-share ratio: This is a good measure of your credit union's ability to lend, and a high ratio is necessary to generate the earnings (ROA) ...