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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Fundamental Analysis
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Return on net assets measures a companyâ€™s financial performance. 
Investing
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Fundamental Analysis
Equity Multiplier
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Investing Basics
Cost of Debt
Cost of debt is the rate, expressed as a percentage, that a company pays on its borrowings. 
Investing
Asset Turnover Ratio
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Economics
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I have an IRA with aftertax money in it. How do I avoid being taxed again?
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Which financial ratios are considered to be efficiency ratios?
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