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What Is Return on complete Assets?

Return on total assets (ROTA) is a ratio that measures a company"s earnings before interest and taxes (EBIT) relative to its total net assets. It is characterized as the ratio between net income and also total mean assets, or the amount of financial and operational income a company receives in a jae won year as contrasted to the mean of the company"s full assets.


The proportion is thought about to be an indicator that how successfully a company is making use of its legacy to generate earnings. EBIT is used instead of net profit to save the metric concentrated on operating revenue without the influence of taxation or financing distinctions when contrasted to comparable companies.