Realty Income Return On Asset vs. Operating Margin Fundamental AnalysisRealty Income Corporation is regarded fifth in operating margin category among related companies. It is rated below average in return on asset category among related companies reporting about 0.03 of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Realty Income Corporation is roughly 33.45 Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.Return 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 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.
Realty Income Return On Asset Comparison