Return on assets

The return on total assets (in short: GCC, also: return on assets, return on assets, return on investment, corporate profitability, corporate earnings, return on assets, ROA ) indicates how efficient was the use of capital of an investment project within a billing period. By using this metric can be the disadvantages of equity, and thus the leverage effect of the bypass.

For the return on total assets applies:

Total capital consists of equity and debt ( debt ) and is listed on the liabilities side of the balance sheet. Under debt loan debt to understand short-term bank debts, liabilities ( other and Receivables ) and provisions. Net income, also known as net income is determined by the completion of the profit and loss account ( P & L). Borrowing costs are costs of the company and thus reduce its net profit. In the profit and loss account of the creditor (ie the lender, such as a bank) interest on borrowed capital is income.