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
A profitability measure that indicates how well a company uses ... 
AfterTax Return
The return on an investment including all income received and ... 
AfterTax Income
The amount of money that an individual or company has left over ... 
AfterTax Profit Margin
A financial performance ratio, calculated by dividing net income ... 
Cost Of Debt
The effective rate that a company pays on its current debt. This ... 
AfterTax Real Rate Of Return
The actual financial benefit of an investment after accounting ...

Personal Finance
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. 
Personal Finance
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. 
Investing
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. 
Markets
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. 
Managing Wealth
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 ... 
Managing Wealth
Cost of Debt
Cost of debt is the rate, expressed as a percentage, that a company pays on its borrowings.

I am making aftertax contributions to an IRA. Will I get taxed again when I withdraw ...
No. Withdrawals of your aftertax contributions to your IRAs should not be taxed. However, the only way to make sure this ... Read Answer >> 
I have an IRA with aftertax money in it. How do I avoid being taxed again?
... Read Answer >> 
Do companies measure their cost of debt with before or aftertax returns?
Understand the before and aftertax calculations of cost of debt capital and how each is useful in deciding between funding ... Read Answer >> 
Why would I need total debt to total assets represented as a ratio, as opposed to ...
Learn why having the relationship between a company's total debt and its total assets is more valuable when expressed as ... Read Answer >> 
What is the difference between efficiency ratios and profitability ratios?
Learn about efficiency and profitability ratios, what these ratios measure and the main difference between efficiency and ... Read Answer >> 
Which financial ratios are considered to be efficiency ratios?
Learn about efficiency ratios, what financial ratios are considered efficiency ratios, and how to calculate three different ... Read Answer >>