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:
\[\text{Return on Tangible Assets} = \text{Net Income} / \text{Average Tangible Assets}\]Also known as: ROTA, tangible asset return.
Return on Tangible Assets (RoTA) in Python
Install the Finance Toolkit 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:
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| AAPL | 0.155 | 0.1543 | 0.1495 | 0.1425 | 0.17 |
| TSLA | 0.0632 | 0.118 | 0.1114 | 0.0443 | 0.0208 |
Parameters
The function 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.