Learn how a High ROA Leads to a High ROI

When you are looking to invest, there are many key metrics that are important to look at. Return on Assets (ROA) highlights how profitable a company is. This is a great way to compare a company’s success from one year to the next. It also demonstrates the financial stability and potential for growth.

Buycel is an excellent tool to track this information. First, you will need to pull the net income. To do this, start a new formula in your selected cell. Use our STOCK LATEST formula, seen below and return “Net Income” for the company you are looking into.

Formula: =STOCK_LATEST(TICKER,”NetIncomeLoss”)

ROI image1

 

Next you need to complete the same process except select “Assets.”

Formula: =STOCK_LATEST(TICKER,”Assets”)

 

 

Now you can find the return on assets by dividing net income by total assets.

Formula: =Net Income / Total Assets

ROI image3

 

 

 

Using these three formulas you can easily find the ROA of companies, as seen below. You can use this same method to find other ratios, such as quick ratio and net working capital. All of this information can help you save time researching and make better investments.

 

Get started with Buycel today and you’ll be able to perform analysis like this and much more!

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Legal Notice – Buycel does not make recommendations or offer investment advice of any kind and is not responsible for the accuracy of data provided by external data sources. Please review our legal policy for further details.

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