The return on assets or ROA is one of the profitability ratios which indicates how well a company is doing financially in relation to its total assets (cash, inventory, property etc.). In other words, the higher the ratio the more efficient is the company's ability to generate profits by utilizing its economic resources.
* A company's ROA will always be lower than its ROE (return on equity), if a company has no debt, it's ROA will be exactly the same as its ROE.
The formula for determining the return on equity (ROE) is defined as:
\(ROA\): Return on assets
\(Net\text{ }Income\): How much money company is making after all expenses have been paid including taxes.
\(Total\text{ }Assets\): Everything the company owns such as inventory, products and goodwill.
The ROA is measured in: \(\%\)
Find ROA
Use this calculator to find the Return On Assets (ROA) of a company.
How much money company is making after all expenses have been paid including taxes.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
Everything the company owns such as inventory, products and goodwill.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
