Return on Assets (ROA) is a financial metric used to assess a company's efficiency in using its assets to generate earnings. It indicates how well a company is utilizing its assets to produce profit. The formula for calculating ROA is: \[ \text{ROA} = \frac{\text{Net Income}}{\text{Total Assets}} \] Where: - **Net Income** refers to the profit of the company after all expenses, including taxes and interest, have been deducted.
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