Return On Asset AnalysisReturn on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Return On Asset Over Time Pattern
About Return On AssetReturn on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
|Compare to competition|
Home Depot Return On Asset Assessment
Based on latest financial disclosure The Home Depot has Return On Asset of 20.54%. This is much higher than that of the Consumer Cyclical sector, and significantly higher than that of Home Improvement Stores industry, The Return On Asset for all stocks is over 1000% lower than the firm.