Strategic Assessment
HOW A BUSINESS PERFORMS IN A FAST-MOVING WORLD
How high should your ROA be? Carlos provides a good rule of thumb in the Verification Question below.
VERIFICATION QUESTION: What is your ROA (Return on Assets)? To
calculate ROA (sometimes referred to as “Return on Investment”, divide
your company's annual net profits by its total assets. Your answer
should display as a percentage. Caveat: A healthy ROA should be higher than 10%.
If your Total Score was 80 or
higher, your ROA should be over 10%. If it is not, you are probably
scoring yourself too high in Questions #1-10. Please go back and
read the Caveats attached to these questions, to see if you can find
areas where you may be mistakenly optimistic.