ROA (Return on Assets) and ROI (Return on Investment) are both financial metrics used to evaluate the profitability of a company, but they focus on different aspects of the business.

Return on Assets (ROA):

• ROA measures how efficiently a company is using its assets to generate profit.
• It is calculated by dividing the net income of the company by its total assets.
• ROA gives an indication of how well management is utilizing the company's assets to generate earnings.

Return on Investment (ROI):

• ROI measures the profitability of an investment relative to its cost.
• It is calculated by dividing the net profit from an investment by the initial cost of the investment.
• ROI is often used to assess the attractiveness of an investment opportunity or to compare the efficiency of different investments.

In summary, ROA assesses how efficiently a company uses its assets to generate profit, while ROI evaluates the profitability of an investment relative to its cost.