Learn how ROAA measures asset profitability, particularly in banking. Discover its formula, usage, impact across industries, ...

Learn how the long-term debt-to-total-assets ratio reveals a company's financial health by showing what portion of its assets is financed by long-term debt.

One key metric that offers valuable insights into a company’s financial health is the return on average assets (ROAA). This financial ratio measures how effectively a company uses its assets to ...

Two important financial ratios used for analysis by investors and creditors include the total asset turnover ratio and the profit margin. Total asset ratio falls under the category of asset ...

Strong accounting practices are key to managing your small business. A major part of accounting is understanding a balance sheet, the part of your financial statements that show your net worth. To ...

An asset constitutes anything that holds monetary value, whether current or future, to a person or organization. Businesses, governments and non-profits all own assets. So do many people. An asset is ...

Assets represent any items owned by an individual or a business that have the potential to grow in value. Defining assets isn’t easy, as “any item” is a broad category that encompasses myriad items ...

Equity-to-asset ratio indicates how much of a company is owned versus debt-leveraged. To calculate, divide total equity by total assets; e.g., $4M/$5M = 80%. Compare ratio to industry to assess ...

Net asset value, or NAV, represents the value of an investment fund and is calculated by adding the total value of the fund’s assets and subtracting its liabilities. Mutual funds and ETFs use NAV to ...