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Smart Money

Glossary

What is ROA (return on assets)?

Return on assets measures annual profit as a percentage of the company's total assets.

ROA shows how productively a business uses everything it owns, whatever the mix of debt and equity behind it. Banks typically earn ROA of 1–2%; industrial companies much more.

Formula

ROA = net profit ÷ average total assets × 100

ROA (return on assets) on the Pakistan Stock Exchange

Across 479 listed companies with the figure, the median is 2.8%.

ROA (return on assets) of the largest PSX companies
Largest companiesROA (return on assets)
OGDC Oil & Gas Development Company Limited 13.8%
UBL United Bank Limited 1.3%
MEBL Meezan Bank Limited 2.1%
FFC Fauji Fertilizer Company Limited 14.3%
MARI Mari Energies Limited 18.8%