What is definition of ROA, ROI, ROE, ROS, EBITDA in finance ?
How can be calculated, described and used:
The definition of performance measures ROA, ROI, ROE, ROS and EBITDA can be:
ROA - Return of assets is an indicator of how profitable the company is relative to its total assets. It can be calculated as: ROA = Net Income / Total Assets
ROI - Return of investments measures the gain or loss generated on an investment relative to the amount of money invested. The calculation can be: ROI = ( Net Profit / Cost of Investment ) x 100
ROE - Return of equity indicates the interest return of the capital supplied by the shareholder. It can be calculated as: ROE = ( Net Income / Shareholder's Equity ) x 100
ROS - Return of sales is an indicator of how efficiently a company turns sales into profits. The calculation of indicator can be: ROS = Operating Profit / Net Sales
EBITDA - means Earnings Before Interest, Taxes, Depreciation and Amortization. It is a measure of the company's overall financial performance, often used by financial analysts. It helps to calculate company's enterprise value.
There are also different calculations of company's performance available.
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