EBIT Return on Assets Calculator

✖Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.ⓘ Earnings Before Interest and Taxes [EBIT]			+10% -10%
✖Average Total Assets is a financial metric that represents the average value of a company's total assets over a specific period of time.ⓘ Average Total Assets [ATA]			+10% -10%

✖Return on Assets is a financial metric that measures a company's profitability relative to its total assets.ⓘ EBIT Return on Assets [ROA]

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Formula

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EBIT Return on Assets

Formula

`"ROA" = "EBIT"/"ATA"`

Example

`"2"="450000"/"225000"`

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EBIT Return on Assets Solution

STEP 0: Pre-Calculation Summary

Formula Used

Return on Assets = Earnings Before Interest and Taxes/Average Total Assets
ROA = EBIT/ATA
This formula uses 3 Variables

Variables Used

Return on Assets - Return on Assets is a financial metric that measures a company's profitability relative to its total assets.
Earnings Before Interest and Taxes - Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.
Average Total Assets - Average Total Assets is a financial metric that represents the average value of a company's total assets over a specific period of time.

STEP 1: Convert Input(s) to Base Unit

Earnings Before Interest and Taxes: 450000 --> No Conversion Required
Average Total Assets: 225000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROA = EBIT/ATA --> 450000/225000

Evaluating ... ...

ROA = 2

STEP 3: Convert Result to Output's Unit

2 --> No Conversion Required

FINAL ANSWER

2 <-- Return on Assets

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Verified by Kashish Arora

Satyawati College (DU), New Delhi

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< 7 Profitability Ratio Calculators

EBIT Return on Assets

Go Return on Assets = Earnings Before Interest and Taxes/Average Total Assets

Business Operating Profit Margin

Go Operating Profit Margin = Operating Income/Sales*100

Operating Profit Margin

Go Operating Profit Margin = Operating Income/Sales*100

Pre Tax Margin Ratio

Go Pre-Tax Margin = (Earnings Before Tax/Sales)*100

Return on Assets Ratio

Go Return on Assets = Net Income/Total Assets

Business Net Profit Margin

Go Net Profit Margin = Net Income/Sales*100

Net Profit Margin

Go Net Profit Margin = Net Income/Sales*100

EBIT Return on Assets Formula

Return on Assets = Earnings Before Interest and Taxes/Average Total Assets
ROA = EBIT/ATA

What is EBIT Return on Assets?

EBIT (Earnings Before Interest and Taxes) Return on Assets, often abbreviated as EBIT ROA, is a variation of the Return on Assets (ROA) ratio that measures a company's profitability before accounting for interest and taxes relative to its total assets. It provides insights into the company's operational efficiency and profitability by excluding the effects of interest and taxes.
EBIT (Earnings Before Interest and Taxes): This represents the company's operating profit before deducting interest expenses and taxes. It reflects the profitability of the company's core business operations and excludes non-operating income and expenses. EBIT is typically found on the company's income statement.
Average Total Assets: This is the average value of the company's total assets over a specific period, usually calculated as the average of the total assets at the beginning and end of the period.

How to Calculate EBIT Return on Assets?

EBIT Return on Assets calculator uses Return on Assets = Earnings Before Interest and Taxes/Average Total Assets to calculate the Return on Assets, The EBIT Return on Assets formula is defined as a variation of the Return on Assets (ROA) ratio that measures a company's profitability before accounting for interest and taxes relative to its total assets. Return on Assets is denoted by ROA symbol.

How to calculate EBIT Return on Assets using this online calculator? To use this online calculator for EBIT Return on Assets, enter Earnings Before Interest and Taxes (EBIT) & Average Total Assets (ATA) and hit the calculate button. Here is how the EBIT Return on Assets calculation can be explained with given input values -> 450 = 450000/225000.

FAQ

What is EBIT Return on Assets?

The EBIT Return on Assets formula is defined as a variation of the Return on Assets (ROA) ratio that measures a company's profitability before accounting for interest and taxes relative to its total assets and is represented as ROA = EBIT/ATA or Return on Assets = Earnings Before Interest and Taxes/Average Total Assets. Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses & Average Total Assets is a financial metric that represents the average value of a company's total assets over a specific period of time.

How to calculate EBIT Return on Assets?

The EBIT Return on Assets formula is defined as a variation of the Return on Assets (ROA) ratio that measures a company's profitability before accounting for interest and taxes relative to its total assets is calculated using Return on Assets = Earnings Before Interest and Taxes/Average Total Assets. To calculate EBIT Return on Assets, you need Earnings Before Interest and Taxes (EBIT) & Average Total Assets (ATA). With our tool, you need to enter the respective value for Earnings Before Interest and Taxes & Average Total Assets and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Return on Assets?

In this formula, Return on Assets uses Earnings Before Interest and Taxes & Average Total Assets. We can use 1 other way(s) to calculate the same, which is/are as follows -

Return on Assets = Net Income/Total Assets

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