Return on investment and return on assets are both measures of how effectively a firm uses its resources.

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Both return on investment and return on assets are ratios that assess a company's efficiency in deploying its resources. Return on investment (ROI) compares a company's net profit to the amount of money invested in the business, while return on assets (ROA) compares a firm's net income to the total value of its assets. Both ratios are important indicators of a company's performance and can be used by investors or managers to evaluate the effectiveness of the firm's operations.

Return on Investment and Return on Assets Are Both Measures