ROA (return on assets): what it is and how to read it
ROA measures how much profit the company makes from everything it owns: its assets, whether paid for with shareholders' money or with debt. It shows how efficiently it uses its resources.
How it is calculated
ROA = annual net income / total assets.
How to read it
For most companies, an ROA above 5% is good and above 10% very good. Banks normally have an ROA of 1% or less, because they run huge balance sheets.
ROA in the MeridIAn ranking
Among the 2,092 companies in the ranking with data, the median ROA is 4.7%: half are below and half above. The lowest 25% are below 2.4% and the highest 25% above 7.7%.
For example: NVIDIA, 53.6%; Apple, 27.1%; Alphabet, 13.0%; Banco Santander, 0.8%.
By sector
| Sector | Median | Companies with data |
|---|---|---|
| Basic Materials | 6.0% | 140 |
| Communication Services | 4.7% | 100 |
| Consumer Cyclical | 6.1% | 227 |
| Consumer Defensive | 5.8% | 123 |
| Energy | 6.4% | 100 |
| Financial Services | 1.4% | 343 |
| Healthcare | 5.1% | 213 |
| Industrials | 5.7% | 379 |
| Real Estate | 2.6% | 99 |
| Technology | 6.0% | 276 |
| Utilities | 3.0% | 92 |
Highest ROA
What to watch out for
Only compare within the same sector: a software company and a utility need very different amounts of assets.
Related metrics
All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →
General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.