- Return On Assets Ratio:
- 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.
- ROA = Net Income / Total Assets
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
- Jun 10, 2018
- Tool Launched