Return On Total Assets - ROTA

  

The formula: "Return" here is usually net income; it goes into the numerator. Then in the denominator? Total Assets. Alllll of them. Current. Long-term. Tangible. Intangible. And others. All. That's what goes in the denominator...the whole asset enchilada.

It asks, "How well are you managing the assets you have?" Like...if you'd spent $18 billion on whatever.com factories but only had earnings of, say, $100 million, your returns are 1/18,000. So...not very good. You get the gist.

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