Definition of Return on Assets (ROA) & Return on Total Assets

According to Anthony, Hawkins & Merchant (1999) ROA is:

"Return on Assets (ROA), reflect how much the firm has earned on the investment of all the financial resources to the firm comited. Thus, the ROA measure is appropriate if one consider the investment in the firm to include current liabilities, long - term liabilities, and owner equity, sandwiches are the total sources of funds Invested in the assets ".

According to Weston & Brigham (1976:47):
“Return on Total Assets, the ratio of net profit to total assets measures the return on total investment in the firm, or the ROI, as it is frequently called”.

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