# Return on Assets Calculator

Jun 10, 2018

Return on Assets Calculator is a tool that computes how well a company is generating profits from its total assets

Return On Assets Ratio:
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What does Return on Assets Ratio mean?
ROA or Return on Assets is referred to as "return on investment". The Return on Assets Ratio is an indicator of how profitable a company is relative to its total assets.
Formula
ROA = Net Income / Total Assets
Example

A Construction Company is a growing construction business that has a few contracts to build storefronts in Chicago. Its balance sheet shows beginning assets of $1,000,000 and an ending balance of$2,000,000 of assets. During the current year, it had net income of \$20,000,000.

According, to the formula, Return on Assets Ratio is:-

• 1,333.3 percent