Finance refers to the issuance, circulation and withdrawal of money, the issuance and recovery of loans, the deposit and withdrawal, the exchange of foreign exchange and other economic activities. The essence of finance is value circulation. There are many kinds of financial products, including banks, securities, insurance, trusts and so on. Finance involves a wide range of academic fields, including accounting, finance, investment, banking, securities, insurance, trust and so on. Financial futures is a kind of futures trading. Futures trading refers to the trading of standardized futures contracts by both parties in a centralized trading market through open bidding. Futures contract is the object or subject matter of futures trading, which is uniformly formulated by the futures exchange and stipulates a standardized contract to deliver a certain quantity and quality of goods at a specific time and place. The basic tools of financial futures contracts are various financial instruments (or financial variables), such as foreign exchange, bonds, stocks and price indexes. In other words, financial futures are futures trading based on financial instruments (or financial variables).
Return on Total Assets (ROTA) is another very useful ratio when analyzing the profitability of a company. It is another indicator to measure the profitability of enterprises.
When evaluating the realization of corporate profit targets, investors tend to pay attention to the realization effect of rewards related to the invested assets, and often combine earnings per share (EPS) and return on net assets (ROE) to make judgments. In fact, ROTA return on assets is a more effective indicator. The level of return on total assets directly reflects the company's competitive strength and development ability, and it is also an important basis for deciding whether the company should borrow money to operate.
Return on total assets and return on net assets (net profit/shareholders' equity × 100%) are analyzed together, and the risk degree of the company's operation can be explained according to the difference between them. For companies with little net assets left, although the index value is relatively high, it still cannot explain that their risks are small; Return on net assets, as one of the necessary conditions for rights issue, is an important reference index for the company to adjust its profits.