A study on impact of rota analysis on Hero Honda Motors and TVS Motor Company

The return on total assets (ROTA) and the return on equity (ROE) are two separate measures of profitability. They are necessary because they throw light on different aspects of the business. The return on total assets looks at the operating efficiency of the total enterprise, while the return on equity considers how that operating efficiency is transformed into benefit to the owners of the business. The return on total assets (ROTA) provides the foundation necessary for a company to deliver a good Return on Equity (ROE). Since ROTA is the prime measure of operating performance, its importance cannot be over-emphasized. It is the greatest single driver of return on equity. It is the operating profitability measure over which the operations management has most control. The return on total assets measure of profitability (ROTA) covers not only the costs and revenue aspects of operation but also the efficient utilization of all assets, both fixed and current assets to earn revenue. Against this background, in this article, it is proposed to analyse the operating profitability (return on total assets) and to estimate the influences of various factors on ROTA of HHM and TVSM during the period under study.