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 '2020', LU's return on assets was 5.0%, representing returns generated from total assets. Industry average for Finance: Consumer Services in '2020' stood at -11.6%.
• In '2021', LU's return on assets was 5.5%, representing returns generated from total assets. The increase since '2020' reflects strengthening financial performance. Industry average for Finance: Consumer Services in '2021' stood at -2.0%. Industry average increased by 9.6% compared to previous year.
• In '2022', LU's return on assets was 2.5%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2022' stood at -13.5%. Industry average declined by 11.6% from previous year.
• In '2023', LU's return on assets was 0.3%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2023' stood at -9.1%. Industry average increased by 4.5% compared to previous year.
Overall, LU'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%.