Return On Total Assets
What is ROTA? What does ROTA stand for? How is return on total assets calculated?
Return On Total Assets, often referred to by its acronym ROTA, is the ratio of a company’s Earnings Before Interest and Taxes (EBIT) to its total net assets. ROTA is a measure of a company’s effectiveness at generating earnings using its assets prior to interest and tax expense.
ROTA = EBIT / (Total Net Assets)