Image for RAF

RAF

RAF, or Return on Assets, is a financial metric that measures how efficiently a company uses its assets to generate profits. It is calculated by dividing the company's net income by its total assets. A higher RAF indicates that the company is effectively leveraging its assets to produce earnings, reflecting operational efficiency. It helps investors understand how well a business utilizes its resources to generate profitability, with comparisons often made against industry averages or competitors to assess performance.