Everything the company owns, added up
Cash, inventory, factories and goodwill, all converted to money and summed. It always equals equity plus what the company owes. How much profit is squeezed out of that total is what return on assets measures.
Equity of $40 million plus debts of $60 million makes $100 million of assets.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.