DEFINITION of 'AfterTax Return On Assets'
A profitability measure that indicates how well a company uses its capital resources to generate income. To calculate aftertax return on assets, divide the company's total aftertax income by the value of its total assets. The resulting figure, multiplied by 100, will be a percentage; the higher the percentage, the more efficiently the company uses its assets.
BREAKING DOWN 'AfterTax Return On Assets'
The aftertax return on assets ratio can be helpful in comparing the profitability of differentsized companies because it allows investors to see how efficiently a company works with what it has, regardless of how big the company is. If a company has $20 million in net income and $100 million in total assets, its aftertax return on assets would be 20%. A smaller company might only bring in $5 million after taxes, but if its assets totaled $20 million, it would have a superior aftertax return on assets of 25%.

AfterTax Return On Sales
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AfterTax Return
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AfterTax Income
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AfterTax Profit Margin
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AfterTax Real Rate Of Return
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Return On Assets Managed  ROAM
A measure of profits shown as a percentage of the capital that ...

Retirement
How AfterTax Rollovers Affect Your IRA
Consolidating retirement assets? Make sure you account for pretax and aftertax assets separately. 
Retirement
AfterTax Balance Rules For Retirement Accounts
Accumulating posttax assets can work to your advantage. Find out how. 
Financial Advisor
IRS Rule on 401(k) AfterTax Dollars
A relatively new IRS ruling has made it easier for taxpayers to benefit from making aftertax contributions to their 401(k) and/or other retirement plans. 
Retirement
Retirement Plan Tax Form 8606: When To File
If you have a Roth IRA, you are responsible for keeping track of your pretax versus aftertax assets. 
Retirement
How IRA Contributions Affect Your Taxes
Learn how to work with the tax man to avoid getting gouged when you convert your plans. 
Investing
Calculating Return on Net Assets
Return on net assets measures a company’s financial performance. 
Small Business
Total Debt to Total Assets
Total Debt to total assets, also called the debt ratio, is an accounting measurement that shows how much of a company’s assets are funded by borrowing. In business, borrowing is also called leverage. 
Investing
Equity Multiplier
The equity multiplier is a straightforward ratio used to measure a company’s financial leverage. The ratio is calculated by dividing total assets by total equity. 
Investing
Asset Turnover Ratio
Investopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ... 
Investing
Cost of Debt
Cost of debt is the rate, expressed as a percentage, that a company pays on its borrowings.

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