Return on Tangible Assets (RoTA)

Calculate the return on tangible assets, a financial ratio that measures the amount of profit generated by a company’s tangible assets.

The return on tangible assets (ROTA) provides insights into the efficiency with which a company utilizes its tangible assets to generate profits. Tangible assets include physical assets such as buildings, machinery, and equipment. ROTA indicates how well a company can generate profits from its core operational assets.

The formula is as follows:

Also known as: ROTA, tangible asset return.

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Calculate the Return on Tangible Assets (RoTA) in Python

The Return on Tangible Assets (RoTA) is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_return_on_tangible_assets as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

rota_ratios = toolkit.ratios.get_return_on_tangible_assets()

Which returns:

Parameters

get_return_on_tangible_assets accepts the following parameters:

• rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
• growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
• lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
• standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
• trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.

Related Profitability Ratios

The Ratios module page introduces the module, and the sidebar lists all of its functions.