what is ROA

Return on Assets (ROA) is a financial ratio that measures a company's efficiency in generating profits from its assets. It indicates how effectively a company is using its total assets to generate earnings. ROA is expressed as a percentage, and a higher percentage generally indicates better performance. To calculate ROA, you divide the company's net income by its average total assets. For Cleveland-Cliffs (CLF), the ROA calculation would involve using the company's net income and average total assets.