Topics
Series
Concept
Name
Return on total assets
en-NZ
Label
Return on total assets
en-NZ
Description
Total current year taxable profit divided by total assets.
The return on total assets represents the ratio of net income to assets. This ratio tests the efficiency of investment in assets and is a measure of how effectively the business has converted these assets into net income. The higher the ratio, the more efficient a business is. The lower the ratio, and a negative ratio (loss), the less efficiently a business has used the assets.
en-NZ