Listed for the trailing twelve months, return on assets is net income per share divided by the per-share book value of its assets and measures how efficiently a company is able to use its assets to generate profits. Stocks with high returns on assets are generally preferable to those with low returns on assets. Note, however, that return on asset figures can be misleading owing to accounting conventions. Because asset values on a company's balance sheet are based on historic cost accounting, they may bear little resemblance to their current replacement value.
Return On Assets for a mutual fund represents a weighted median figure such that approximately 50% of the domestic stocks in the portfolio will have a greater ROA and roughly 50% of these domestic stocks will have a lower ROA than the weighted median.
Origin
All ROA figures are calculated in house at the equity level, based on the domestic stocks in the fund’s most recently reported portfolio. Portfolio analytics are calculated when we receive an updated portfolio from the fund company.