Financial Terms Glossary

Return On Assets (ROA)


A simple percentage comparison between the profits generated by a business and the assets used or utilised to generate that profit. Eg I have £1 Million assets in a business and make £100,000 profits per annum = 10% Return On Assets


I make a £1 Million profit every year. This sounds good, but if I have used £100 Million of cash and business assets to generate this amount then this return is not so good after all. This is because I have only returned 1% on the assets used in the business to realise this profit.

What we do

At Shark Finesse we have created business case software to help you win budget and change the way you talk to customers about business value.
Find out how

We'd love to hear from you!

+44 (0)1256 338635
Grove House, Lutyens Close
Basingstoke, Hampshire
RG24 8AG, UK