Return on assets (ROA)will usually reveal when a bank's performance is not up to par, but it does not indicate the reason for poor performance.

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ROA measures a company's net income relative to its total assets, indicating how efficiently a company uses its assets to generate profit. While it can signal underperformance, it does not diagnose the specific reasons behind it, such as poor asset management, high costs, or low sales.

Return on Assets (ROA)will Usually Reveal When a Bank's Performance