What's it: Return on assets (ROA) is a profitability ratio to measure how well a company uses its assets to generate profits. This ratio tells us about the returns the company gets on its assets. We calculate it by dividing net profit
Assets
Operating ROA: Formula, Calculation, and Interpretation
What's it: Operating ROA is a profitability ratio to measure how well a company is using its assets to generate profits from its core business. We calculate it by dividing operating profit by total assets. Operating ROA provides
Inventory: Type, Effect on GDP, Its Accounting Analysis
What's it: An inventory is a list of all the items that a company maintains as production inputs and items to fulfill sales. They include raw materials, work in progress, and finished goods. They are essential for two reasons. First, by converting
Intangible Assets: Meaning, Types, Reporting In On The Balance Sheet
What's it: Intangible assets are types of assets with no physical substance but identifiable and flow the economic benefits to the company. Such benefits can be in the form of additional revenue, cost savings, or increasing market share.
Current Assets: Items, How to Calculate and Analysis
What it is: Current assets are cash and other assets that the company expects to be converted into cash, sold or used in a year or normal operating cycle. Why it matters: Current assets are useful for meeting liquidity needs and
Accounts Receivable: Meaning, How to Report and Analyze It
Accounts receivable, or sometimes called trade receivables, is the amount owed by customers for the purchase of goods and services on credit. In other words, this account appears when the company has provided products or services but has not received