Difference betwen ROA & ROI
This query is : Resolved
CA Mayur Sojrani
(Querist)
15 April 2009
Hollow frndz,
I want to know wat is the difference between Return on Assets (ROA)
and Return on Investment (ROI)
I want to know wat is the difference between Return on Assets (ROA)
and Return on Investment (ROI)
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
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
15 April 2009
https://www.investopedia.com/terms/r/returnonassets.asp
https://www.investopedia.com/terms/r/returnoninvestment.asp
https://www.investopedia.com/terms/r/returnoninvestment.asp
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