Cash Return on Assets Calculator

✖Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization.ⓘ Operating Cash Flow [OCF]			+10% -10%
✖Total Average Assets are obtained by summing the value of total assets at the beginning and the end of the period and dividing the result by 2.ⓘ Total Average Assets [TAA]			+10% -10%

✖Cash Return on Assets is a measure of the operational cash flow against the total assets owned by a business.ⓘ Cash Return on Assets [ROA_c]

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Formula

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Cash Return on Assets

Formula

`"ROA"_{"c"} = "OCF"/"TAA"`

Example

`"0.7"="4200000"/"6000000"`

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Cash Return on Assets Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cash Return on Assets = Operating Cash Flow/Total Average Assets
ROA_c = OCF/TAA
This formula uses 3 Variables

Variables Used

Cash Return on Assets - Cash Return on Assets is a measure of the operational cash flow against the total assets owned by a business.
Operating Cash Flow - Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization.
Total Average Assets - Total Average Assets are obtained by summing the value of total assets at the beginning and the end of the period and dividing the result by 2.

STEP 1: Convert Input(s) to Base Unit

Operating Cash Flow: 4200000 --> No Conversion Required
Total Average Assets: 6000000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROA_c = OCF/TAA --> 4200000/6000000

Evaluating ... ...

ROA_c = 0.7

STEP 3: Convert Result to Output's Unit

0.7 --> No Conversion Required

FINAL ANSWER

0.7 <-- Cash Return on Assets

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 9 Performance Ratio Calculators

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Cash Flow per Share

Go Cash Flow per Share = (Operating Cash Flow-Preferred Dividends)/Total Common Shares Outstanding

Enterprise Value

Go Enterprise Value = Market Capitalization+Total Debt of Company-Cash and Cash Equivalents

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Market to Book Ratio

Go Market to Book value = Market Capitalization/Book Value of Equity

Return on Equity using Shareholder's Equity

Go Return on Equity = (Net Income/Average Shareholders' Equity)*100

Cash Return on Assets

Go Cash Return on Assets = Operating Cash Flow/Total Average Assets

Cash to Net Income ratio

Go Cash Flow to Income = Operating Cash Flow/Net Income

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Cash Return on Assets Formula

Cash Return on Assets = Operating Cash Flow/Total Average Assets
ROA_c = OCF/TAA

What is a cash return on assets ratio?

A cash return on assets ratio is a way to measure the performance of companies in industries that heavily depend on their assets such as manufacturing and construction. It measures how efficient a company is at utilising its assets, thus increasing or decreasing its cash flow.

How to Calculate Cash Return on Assets?

Cash Return on Assets calculator uses Cash Return on Assets = Operating Cash Flow/Total Average Assets to calculate the Cash Return on Assets, The Cash Return on Assets ratio is a measure of the operational cash flow against the total assets. It displays the performance of a business which is how much money a company is raising from its assets. Cash Return on Assets is denoted by ROA_c symbol.

How to calculate Cash Return on Assets using this online calculator? To use this online calculator for Cash Return on Assets, enter Operating Cash Flow (OCF) & Total Average Assets (TAA) and hit the calculate button. Here is how the Cash Return on Assets calculation can be explained with given input values -> 0.7 = 4200000/6000000.

FAQ

What is Cash Return on Assets?

The Cash Return on Assets ratio is a measure of the operational cash flow against the total assets. It displays the performance of a business which is how much money a company is raising from its assets and is represented as ROA_c = OCF/TAA or Cash Return on Assets = Operating Cash Flow/Total Average Assets. Operating Cash Flow is very important in any organization because it helps for measuring the cash margin generated by the normal business operations of the organization & Total Average Assets are obtained by summing the value of total assets at the beginning and the end of the period and dividing the result by 2.

How to calculate Cash Return on Assets?

The Cash Return on Assets ratio is a measure of the operational cash flow against the total assets. It displays the performance of a business which is how much money a company is raising from its assets is calculated using Cash Return on Assets = Operating Cash Flow/Total Average Assets. To calculate Cash Return on Assets, you need Operating Cash Flow (OCF) & Total Average Assets (TAA). With our tool, you need to enter the respective value for Operating Cash Flow & Total Average Assets and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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