In simplest terms, for your understanding, return on assets (ROA) means "the return/income you obtain by investing in the assets" OR "how much your assets contribute towards your earning".

The formula is:

ROA = Net Income/Total Assets

A company like SNGPL or SSGCL usually invest in its infrastructure (pipe lines, etc.) and the profit it makes by such investment is then analysed by using ROA to determine whether the investor has benefited from its investment in assets.

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