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Cash Return on Assets Formula

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Cash Return on Assets is a measure of the operational cash flow against the total assets owned by a business. Check FAQs

ROA c = \frac{OCF}{TAA}

ROA_c - Cash Return on Assets?OCF - Operating Cash Flow?TAA - Total Average Assets?

Cash Return on Assets Example

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Here is how the Cash Return on Assets equation looks like with Values.

Here is how the Cash Return on Assets equation looks like with Units.

Here is how the Cash Return on Assets equation looks like.

0.7 = \frac{4.2E+6}{6E+6}

0.7 = \frac{4.2E+6}{6E+6}

0.7 = \frac{4.2E+6}{6E+6}

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Cash Return on Assets Solution

Follow our step by step solution on how to calculate Cash Return on Assets?

FIRST Step Consider the formula

ROA c = \frac{OCF}{TAA}

Next Step Substitute values of Variables

∴

ROA c = \frac{4.2E+6}{6E+6}

Next Step Prepare to Evaluate

∴

ROA c = \frac{4.2E+6}{6E+6}

LAST Step Evaluate

∴

ROA c = 0.7

Cash Return on Assets Formula Elements

Variables

Cash Return on Assets

Cash Return on Assets is a measure of the operational cash flow against the total assets owned by a business.

Symbol: ROA_c

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Cash Return on Assets

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.

Symbol: OCF

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Operating Cash Flow

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.

Symbol: TAA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Average Assets

Other formulas in Performance Ratio category

Go Cash Flow to Sales

CFS = \frac{OCF}{S}

Go Cash to Net Income ratio

CFI = \frac{OCF}{NI}

Go Return on Equity using Shareholder's Equity

ROE = (\frac{NI}{E avg}) \cdot 100

Go Cash Flow per Share

CF Share = \frac{OCF - PD}{CSO total}

How to Evaluate Cash Return on Assets?

Cash Return on Assets evaluator uses Cash Return on Assets = Operating Cash Flow/Total Average Assets to evaluate 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 evaluate Cash Return on Assets using this online evaluator? To use this online evaluator for Cash Return on Assets, enter Operating Cash Flow (OCF) & Total Average Assets (TAA) and hit the calculate button.

FAQs on Cash Return on Assets

What is the formula to find Cash Return on Assets?

The formula of Cash Return on Assets is expressed as Cash Return on Assets = Operating Cash Flow/Total Average Assets. Here is an example- 0.7 = 4200000/6000000.

How to calculate Cash Return on Assets?

With Operating Cash Flow (OCF) & Total Average Assets (TAA) we can find Cash Return on Assets using the formula - Cash Return on Assets = Operating Cash Flow/Total Average Assets.

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Cash Return on Assets Formula

Cash Return on Assets Example

Cash Return on Assets Solution

Cash Return on Assets Formula Elements

Other formulas in Performance Ratio category

How to Evaluate Cash Return on Assets?

FAQs on Cash Return on Assets

Variable Name