Define: Return On Total Assets

UK Accounting Glossary

Definition: Return On Total Assets


Quick Summary of Return On Total Assets


Operating profit before deducting interest and taxation, divided by total assets.



What is the dictionary definition of Return On Total Assets?

Dictionary Definition


Return on total assets (ROTA) is a ratio that measures a company’s earnings before interest and taxes (EBIT) relative to its total net assets. The ratio is considered to be an indicator of how effectively a company is using its assets to generate earnings.


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Full Definition of Return On Total Assets



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Return On Total Assets FAQ's


What does a low return on total assets mean?

low return on assets (expressed as a percentage) indicates that the company is not making enough income from the use of its assets.


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https://payrollheaven.com/define/return-on-total-assets/
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Return On Total Assets. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 17, 2019 https://payrollheaven.com/define/return-on-total-assets/.
Chicago Manual of Style (CMS):
Return On Total Assets. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/return-on-total-assets/ (accessed: September 17, 2019).
American Psychological Association (APA):
Return On Total Assets. PayrollHeaven.com. Retrieved September 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/return-on-total-assets/

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This glossary post was last updated: 23rd December 2018.