Cryptocurrency Q&A Do banks use ROA?

Do banks use ROA?

SkylitEnchantment SkylitEnchantment Mon Sep 16 2024 | 7 answers 1275
I understand that Return on Assets (ROA) is a commonly used metric in finance to evaluate a company's profitability. But, I'm curious to know, do banks specifically use ROA as a measure of their financial performance? If so, how do they utilize it in their decision-making processes and what does it reveal about their overall health and stability? Is there a particular benchmark or industry standard that banks aim for when it comes to their ROA? Do banks use ROA?

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