The formula for ROA is almost the same as ROE, but it uses total assets in the denominator whereas ROE uses shareholders' equity. Return on invested capital (ROIC) also measures profitability ...

The ROE formula ... assets minus total liabilities. Then all you need to do is divide net income by the shareholders' equity you just calculated. This is the company's return on equity.

Return on Assets (ROA) vs. Return on Equity (ROE ... funded by both debt and equity investors or total assets. Two variations on this ROA formula fix this numerator/denominator inconsistency ...

The basic return on assets formula is to divide a company's ... utilizing net assets (or shareholders' equity) instead of total assets." In other words, a high ROA could potentially be misleading ...

Firms often use it as a capital budgeting threshold for the required rate of return. The traditional formula ... the total cost of raising capital, taking into account both the cost of equity ...

Total return ... power. Return ratios are financial metrics that are used to evaluate how effectively a company generates profit using its investment dollars, assets, or equity.