Difference betwen ROA & ROI

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CA Mayur Sojrani (Querist)
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15 April 2009 Hollow frndz,
I want to know wat is the difference between Return on Assets (ROA)
and Return on Investment (ROI)

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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15 April 2009 An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".

The formula for return on assets is:

=Net Inome/Total Assets

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

The return on investment formula:

ROI=N.Gain from investment/Total investment

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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15 April 2009 https://www.investopedia.com/terms/r/returnonassets.asp

https://www.investopedia.com/terms/r/returnoninvestment.asp

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