Work

What Is Your ROA? an Investigation of the Many Formulas for Calculating Return on Assets

Year: 2011

Type: preprint

Abstract: This paper compares the eleven different versions of computing return on assets that can be found in current business textbooks. To illustrate the practical differences between the different versions, each version of ROA is calculated for eight slightly different example firms. The results are then compared and analyzed. Pros and cons are then discussed for each version of ROA. A practical ROA taxonomy is proposed to organize the several different versions and to improve comparability.

Source: SSRN Electronic Journal

Authors: Jeffrey Jay Jewell, Jeffrey A. Mankin

Institution: Lipscomb University

Language: English

Topic: Financial Analysis and Corporate Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1569863090

Cites: 1

Cited by: 58

Related to: 10