To measure how efficiently a company can manage its assets to create profits, over a specific period of time, investors use the return on assets ratio or ROA. This ratio compares the net income to average total assets.
Investors look at how well a company is turning its investments into profits as a measure to determine whether to buy stock in that company. Essentially, the return on assets ratio that is positive generally reveals a rising profit trend. Three stocks that currently have high ROAs are Novo Nordisk A/S (ADR) (NYSE:NVO), NetEase, Inc (ADR) (NASDAQ:NTES), and King Digital Entertainment PLC (NYSE:KING).
The first stock to mention is Novo Nordisk A/S (ADR) (NYSE:NVO), which has had a return on assets of 43.10%. That number is a lot higher than the industry average of 11.89% and the sector average at 11.01%. The stock has fallen to its last close price of $57.11; that was a fall of -0.31%. The share volume during last trading session was 909,242. The ranges over the last 52 weeks has been between $41.72 and $60.34.
NetEase, Inc (ADR) (NASDAQ:NTES) has an ROA of 17.39%, maintained over the past 12 months. That number is higher than industry average, which is at 16.44% (as per Reuters data). The sector average comes in at 8.99%. The stock has wavered between $133.74 and $141.73, reaching to $141.20 after its loss of -0.26%.
King Digital Entertainment PLC (NYSE:KING) has shown a return on assets of 53.37% over the last 12 months. That number is up from the average for the industry of 7.91%, with sector average at 8.99%. Those numbers are gathered from Reuters. The stock has spanned between $15.59 and $16.09, with its loss at -2.92% and it rose to $15.63. Over the past 52 weeks, its range has been between $10.68 and $18.49.