Return on assets: approaches and concepts

One of the key efficiency indicators of enterprise’s activities, such as profitability, is discussed in this article. The major factions of profitability and denominations of efficiency indicators, which have the same economic meaning, are elaborated. In researching the author makes the attempt to look at the return on assets conceptually. The Russian economists’ approaches to interpretation and the calculation algorithm of return on assets are systemized in the article. The lack of consensus among researchers is the prerequisite for examination of this issue. The author is emphasized three concepts of return on assets: economic, analytical and financial. The economic concept is based on the calculation of a return on every ruble of assets investment, which is measured by profit. According to the analytical concept the return on assets is seen as the key indicator for the owners of an enterprise which has been one of the most important figures showing the management quality of enterprise total assets. The financial concept deals with the return on assets as the indicator defining the effectiveness of enterprise capital.