ROA
Why is ROA calculates as Net Income/Average Total Assets rather than using a pre-interest finacnial statistic in the numerator? Assets represent both debt- and equity investors, don't they?
said it yourself - NI is what is available after equity and debt holders have been incorporated. Hence, what is left divided by your assets would yield how productive you are with your assets
There are a handful of ROA calculations, including "operating ROA" using the EBIT figure.
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