What should be the minimum RoA one should look?

Feb 17, 2019

RoA is a ratio which are used in comparison with others. It is useful when you compare with businesses which are in similar business.
But, still there could be minimum value you want to see companies producing for its Assets!

I was looking at that and here is the number for Minimum Return On Asset you should look for!
Minimum Return On Asset should be 5% for a company. Again, remember it depends on sector to sector. and I reached at this number after Googling.

Return on Assets (RoA) = Net Income/Avg Total Assets

Wiki also mention 5% is the good number for RoA.

I have found this useful image on net on Ratio:



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