Return on assets is a fundamental metric that you must understand in order to assess a bank’s health, but it doesn’t stand alone. Looking at leverage, ROA, and the assets themselves helps give a more complete picture of what’s going on with a bank.
Return on assets is a fundamental metric that you must understand in order to assess a bank’s health, but it doesn’t stand alone. Looking at leverage, ROA, and the assets themselves helps give a more complete picture of what’s going on with a bank.