what is considered a good roa 
a roa of over 5 is generally considered good and over 20 excellent however roas should always be compared among firms in the same sector for instance a software maker has far fewer assets on the balance sheet than a car maker as a result the software company s assets will be understated and its roa may get a questionable boost the bottom linereturn on assets roa is a financial ratio that indicates how profitable a company is in relation to its total assets it is commonly expressed as a percentage using a company s net income and average assets roa can be used by corporate managers analysts and investors to figure out how efficiently a company uses its assets to generate a profit 