The return on assets $($ROA$)$ ratio is calculated by dividing net income by total assets and multiplying by $100$ to get a percentage. This ratio indicates how efficiently a company is using its assets to generate profit. A higher ROA signifies better asset utilization and management efficiency. ROA is a key performance metric for investors and management, helping them assess the effectiveness of asset use in generating earnings. It also facilitates comparison with industry peers and aids in strategic decision$-$making.