- After-Tax Return On Assets
A profitability measure that indicates how well a company uses its capital resources to generate income. To calculate after-tax return on assets, divide the company's total after-tax income by the value of its total assets. The resulting figure, multiplied by 100, will be a percentage; the higher the percentage, the more efficiently the company uses its assets.
The after-tax return on assets ratio can be helpful in comparing the profitability of different-sized companies because it allows investors to see how efficiently a company works with what it has, regardless of how big the company is. If a company has $20 million in net income and $100 million in total assets, its after-tax return on assets would be 20%. A smaller company might only bring in $5 million after taxes, but if its assets totaled $20 million, it would have a superior after-tax return on assets of 25%.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
After-Tax Return On Sales — A profitability measure that indicates how well a company uses its sales revenue. To calculate after tax return on sales, divide the company s after tax net income by its total sales revenue. The resulting figure, multiplied by 100, will be a… … Investment dictionary
return on assets — ( ROA) A percentage calculated by dividing net income after tax by total assets. Annual income is usually used in the numerator; however, the annualized income for a month, quarter, or half year can be used. Period end assets is often used in… … Financial and business terms
tax return — The form on which an individual, corporation or other entity reports income, deductions, and exemptions and calculates their tax liability. A tax return is generally for a one year period, however, in some cases, the period may be less than a… … Black's law dictionary
Return on equity — (ROE) measures the rate of return on the ownership interest (shareholders equity) of the common stock owners. It measures a firm s efficiency at generating profits from every unit of shareholders equity (also known as net assets or assets minus… … Wikipedia
Tax avoidance and tax evasion — Tax avoidance is the legal utilization of the tax regime to one s own advantage, in order to reduce the amount of tax that is payable by means that are within the law. By contrast tax evasion is the general term for efforts to not pay taxes by… … Wikipedia
Tax forms in the United States — are used by taxpayers and tax exempt organizations to report financial information to the Internal Revenue Service (IRS). They are used to report income and calculate taxes owed to the government of the United States. TOC Federal tax forms 990… … Wikipedia
Return on capital employed — (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough… … Wikipedia
Tax deduction — This article is about the deduction of expenses for the purpose of calculating taxable income. For tax deducted at source, see Withholding tax. Taxation An aspect of fiscal policy … Wikipedia
Tax protester statutory arguments — Part of the Taxation in the United States series Tax protest in the United States … Wikipedia
Return — The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period. The New York Times Financial Glossary * * * ▪ I. return re‧turn 1 [rɪˈtɜːn ǁ ɜːrn] verb 1. [transitive]… … Financial and business terms