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.

Full Definition of Return On Total Assets

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.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Return On Total Assets. Payroll & Accounting Heaven Ltd. July 22, 2019
Chicago Manual of Style (CMS):
Return On Total Assets. Payroll & Accounting Heaven Ltd. (accessed: July 22, 2019).
American Psychological Association (APA):
Return On Total Assets. Retrieved July 22, 2019, from website:

Definition Sources

Definitions for Return On Total Assets are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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