Return on Fixed Assets (RoFA)

RoFA is a financial metric that measures the profitability of a company relative to its fixed assets, such as buildings, machinery, and equipment. It is calculated by dividing the net income by the value of the fixed assets. RoFA highlights how effectively a company utilizes its fixed assets to generate earnings. Effective maintenance can improve RoFA by ensuring that fixed assets are reliable and operational, maximizing their contribution to the company's profitability.