Return on Assets Calculator

Net Income

Total Assets

Return On Assets Ratio:

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Background Information

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