how is roa used by investors 
investors can use roa to find stock opportunities because the roa shows how efficient a company is at using its assets to generate profits a roa that rises over time indicates the company is doing well at increasing its profits with each investment dollar it spends a falling roa indicates the company might have over invested in assets that have failed to produce revenue growth a sign the company may be in some trouble roa can also be used to make apples to apples comparisons across companies in the same sector or industry 