Return on Total Assets

Definition

ROTA. A measure of how effectively a company uses its assets. Calculated by (income before interest and tax) / (fixed assets + current assets).

Use this term in a sentence

You should always hope to have the highest return on total assets that you can on any deal you make.

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There was a return on total assets and I was not in charge of it, so I had my partner take care of that area.

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Return on total assets, in simple terms, is how effectively a company uses its assets, which is calculated by taking ones gross income and dived all of your assets by that amount.

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return on statutory surplus returns to scale