UK Accounting Glossary
Operating profit before deducting interest and taxation, divided by total assets.
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.
A 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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This glossary post was last updated: 23rd December 2018.