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"Return on assets, also known as return on investments, is an indication of how well a company uses their holdings to generate a profit. With any company, the higher the return, the better the company is doing."

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Q: What does return on assets mean to a small company?
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What does return on assets mean?

Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.


What does net liabilities mean?

Net Liabilities are its debts after its current assets are sold. A company's current assets are those that will be sold within one year.


What do you mean by leverage?

basically leverage is the employment of assets or sources of finance for which firms pays fixed cost or fixed return.


What happens when you sublease a car and the company that you leased from goes into liquidation?

You will have to make the payments to the company that purchases their assets, it doesn't mean you get a free car.


What is owner's equity?

Owner's equity is considered the source of the company's assets. Owner's equity is also referred to as the book value of the company, which include the reported assets minus the reported liabilities.


What is the mean of impairment of the assets?

what is mean by assets register?


What do you mean by assets fixed assets and current assets?

Assets:Assets are those items which are utilized by company to earn profit in business cycle.Fixed Assets:Fixed assets are those items the benefits of which have been taken by company for more than one fiscal year like land, building, machinery etc.Current Assets:Current assets are those assets the benefit of which is received or receivable by company in only one fiscal year to earn profit like, cash in hand, marketable securities, inventory, debtors etc.


What does sales mean to a small company owner?

Sales are the lifeblood of a small company. Without enough sales, the company will go out of business.


What does the phrase net worth mean?

Net worth is the total assets of a company (or person) minus outside liabilities.


What is NET INCOME plus INTEREST EXPENSE divided by TOTAL ASSETS?

I think you mean Net Income plus Interest Expensedivided by Total Average Assets.If that is the case, then it is the formula used to determine Return on Assets.


What is a sentence for the word intangible?

Intangible means something that you cannot directly see, but know it is present. For instance, when a company produces a balance sheet, under its assets column sometimes labels some assets as "intangible assets." This could mean something like a certain catchphrase the company has, goodwill, etc. A sentence I would use for this would be: When confronted by a potential investor about the company's intangible assets, the CFO replied, "Don't you know our catchphrase?"


What if tangible net worth of a company is negative?

Nta is calculated as the total assets of the company subtract any intangible assets such as goodwill and trademark, less all liabilities. The nta essentially represents the book value of an organization or individual and may be used to determine the sustainability of the company. However, if the nta of the company is negative this does not mean the company is insolvent. This means the company held more intangible assets than tangible. Also this ratio is good to used when determine whether or not to purchase a stock of a certain company.