Return on Assets Calculator

Jun 10, 2018 0 Comments

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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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

 

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History

Jun 10, 2018
Tool Launched