Returns

ROA — Return on Assets

Net income divided by total assets.

Definition

ROA measures how much profit the company generates per dollar of total assets on its balance sheet, regardless of how those assets are funded.

Formula

(Net Income ÷ Total Assets) × 100

Why it matters

ROA cannot be inflated by leverage the way ROE can, making it useful for comparing companies with different capital structures. For banks, ROA is the cleanest cross-bank profitability comparison.

How Standard Equity uses it

Shown in the main table. The SE Grade's quality pillar scores it for banks and broker-dealers.

The metric

CategoryReturns
Unit%
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