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ROA

function
frds.measures.corporate.roa(data, use_lagged_total_asset=False)

ROA

Income before extraordinary items scaled by total assets

ROA_{i,t} = \frac{IB_{i,t}}{AT_{i,t}}

where IB and AT are from Compustat Fundamentals Annual WRDS.COMP.FUNDA.

If data is a Fundamentals Quarterly dataset:

ROA_{i,t} = \frac{IBQ_{i,t}}{ATQ_{i,t}}
Parameters
  • data (Union[Funda, Fundq]) Input dataset
  • use_lagged_total_asset (bool, optional) Use lagged total assets. Defaults to False.
Returns (Union[pd.Series, None])

ROA

Examples
>>> from frds.data.wrds.comp import Funda
>>> from frds.io.wrds import load
>>> from frds.measures.corporate import roa
>>> FUNDA = load(Funda)
>>> roa(FUNDA)
GVKEY   DATADATE
001000  1961-12-31         NaN
        1962-12-31         NaN
        1963-12-31         NaN
        1964-12-31    0.027542
        1965-12-31   -0.085281
                        ...
001004  1982-05-31    0.010778
        1983-05-31    0.025115
        1984-05-31    0.032697
        1985-05-31    0.058370
        1986-05-31    0.058027
Name: ROA, Length: 100, dtype: float64
See Also
  • ROE - Return on equity

Last update: June 3, 2021
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