what is the difference between return on assets roa and return on equity roe 
return on assets roa and roe are similar in that they are both trying to gauge how efficiently the company generates its profits however roe compares net income to net assets assets minus liabilities of the company while roa compares net income to the company s assets without deducting its liabilities in both cases companies in industries in which operations require significant assets will likely show a lower average return 1