# 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

| Category | Returns |
| -------- | ------- |
| Unit     | %       |

[← Back to glossary](https://standard-equity.report/glossary)