Return on Assets Ratio Calculator

✖Net income is a company's total earnings.ⓘ Net Income [NI]			+10% -10%
✖Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.ⓘ Total Assets [TA]			+10% -10%

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

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Formula

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Return on Assets Ratio

Formula

`"ROA" = "NI"/"TA"`

Example

`"2"="200000"/"100000"`

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Return on Assets Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Return on Assets = Net Income/Total Assets
ROA = NI/TA
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.
Net Income - Net income is a company's total earnings.
Total Assets - Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.

STEP 1: Convert Input(s) to Base Unit

Net Income: 200000 --> No Conversion Required
Total Assets: 100000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROA = NI/TA --> 200000/100000

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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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

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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

Return on Assets Ratio Formula

Return on Assets = Net Income/Total Assets
ROA = NI/TA

What is Return on Assets Ratio?

Return on Assets (ROA) is a financial ratio that measures a company's profitability relative to its total assets. It indicates how effectively a company is able to generate profits from its assets. ROA is calculated by dividing the company's net income by its average total assets and is expressed as a percentage.
ROA provides insights into how efficiently a company is utilizing its assets to generate profits. A higher ROA indicates that the company is generating more profit per unit of asset investment, which is favorable to investors and stakeholders. Conversely, a lower ROA suggests that the company is less efficient in generating profits from its assets.

How to Calculate Return on Assets Ratio?

Return on Assets Ratio calculator uses Return on Assets = Net Income/Total Assets to calculate the Return on Assets, The Return on Assets Ratio formula is defined as a financial ratio that measures a company's profitability relative to its total assets. Return on Assets is denoted by ROA symbol.

How to calculate Return on Assets Ratio using this online calculator? To use this online calculator for Return on Assets Ratio, enter Net Income (NI) & Total Assets (TA) and hit the calculate button. Here is how the Return on Assets Ratio calculation can be explained with given input values -> 2 = 200000/100000.

FAQ

What is Return on Assets Ratio?

The Return on Assets Ratio formula is defined as a financial ratio that measures a company's profitability relative to its total assets and is represented as ROA = NI/TA or Return on Assets = Net Income/Total Assets. Net income is a company's total earnings & Total Assets are the final amount of all gross investments, cash and equivalents, receivables, and other assets as they are presented on the balance sheet.

How to calculate Return on Assets Ratio?

The Return on Assets Ratio formula is defined as a financial ratio that measures a company's profitability relative to its total assets is calculated using Return on Assets = Net Income/Total Assets. To calculate Return on Assets Ratio, you need Net Income (NI) & Total Assets (TA). With our tool, you need to enter the respective value for Net Income & 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 Net Income & Total Assets. We can use 1 other way(s) to calculate the same, which is/are as follows -

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

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