The European Equity Fund(Eea) Financials: Return On Assets Compared To Industry Average, Plus Other Key Ratios

Profitability Trend (Last 5 Years)

Profitability - return on assets

This chart shows the historical trend of return on assets for EEA compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Return on Assets (ROA)

Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.

Interpretation:
• In '2021', EEA's return on assets was 9.7%, representing returns generated from total assets. Industry average for Trusts Except Educational Religious and Charitable in '2021' stood at 10.2%.
• In '2022', EEA's return on assets was -20.3%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Trusts Except Educational Religious and Charitable in '2022' stood at -10.5%. Industry average declined by 20.7% from previous year.
• In '2023', EEA's return on assets was 17.7%, representing returns generated from total assets. The increase since '2022' reflects strengthening financial performance. Industry average for Trusts Except Educational Religious and Charitable in '2023' stood at 7.5%. Industry average increased by 18.0% compared to previous year.
• In '2024', EEA's return on assets was -2.8%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Trusts Except Educational Religious and Charitable in '2024' stood at 8.7%. Industry average increased by 1.3% compared to previous year.
Overall, EEA's return on assets has been volatile but showed a downward trend over the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.