What is definition of ROA, ROI, ROE, ROS, EBITDA in finance ?

How can be calculated, described and used:

  • ROA
  • ROI
  • ROE
  • ROS
  • EBITDA
posted on 19.07.2019 at 19:00
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BrantBrant
The definition of performance measures ROA, ROI, ROE, ROS and EBITDA can be:

ROA - Return of assets is an indicator of how profitable the company is relative to its total assets. It can be calculated as: ROA = Net Income / Total Assets

ROI - Return of investments measures the gain or loss generated on an investment relative to the amount of money invested. The calculation can be: ROI = ( Net Profit / Cost of Investment ) x 100

ROE - Return of equity indicates the interest return of the capital supplied by the shareholder. It can be calculated as: ROE = ( Net Income / Shareholder's Equity ) x 100

ROS - Return of sales is an indicator of how efficiently a company turns sales into profits. The calculation of indicator can be: ROS = Operating Profit / Net Sales

EBITDA - means Earnings Before Interest, Taxes, Depreciation and Amortization. It is a measure of the company's overall financial performance, often used by financial analysts. It helps to calculate company's enterprise value.

There are also different calculations of company's performance available.
posted on 25.08.2019 at 15:29
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BenBen
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