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Alcoa Net Income vs. Return On Asset

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AA -- USA Stock  

Fiscal Quarter End: March 31, 2020  

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Alcoa Return On Asset vs. Net Income Fundamental Analysis

Alcoa Price Drivers Relationships

Alcoa Corporation is rated below average in net income category among related companies. It is rated below average in return on asset category among related companies .
Net income is the profit of a company for the reporting period which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Alcoa 
Net Income 
 = 
(Rev + Gain) 
-  
(Exp + Loss) 
=
(794 M)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Alcoa 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
=
0.0002 
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Alcoa Return On Asset Comparison

  Return On Asset 
    
  Alcoa Comparables 
Alcoa is rated below average in return on asset category among related companies.

Alcoa Fundamental Comparison