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EBIT Return on Assets Formula

GoReturn on Assets Ratio Formula

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Return on Assets is a financial metric that measures a company's profitability relative to its total assets. Check FAQs

ROA = \frac{EBIT}{ATA}

ROA - Return on Assets?EBIT - Earnings Before Interest and Taxes?ATA - Average Total Assets?

EBIT Return on Assets Example

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

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

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

2 = \frac{450000}{225000}

2 = \frac{450000}{225000}

2 = \frac{450000}{225000}

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EBIT Return on Assets Solution

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

FIRST Step Consider the formula

ROA = \frac{EBIT}{ATA}

Next Step Substitute values of Variables

∴

ROA = \frac{450000}{225000}

Next Step Prepare to Evaluate

∴

ROA = \frac{450000}{225000}

LAST Step Evaluate

∴

ROA = 2

EBIT Return on Assets Formula Elements

Variables

Return on Assets

Return on Assets is a financial metric that measures a company's profitability relative to its total assets.

Symbol: ROA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Return on 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.

Symbol: EBIT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Earnings Before Interest and Taxes

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.

Symbol: ATA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Average Total Assets

Other Formulas to find Return on Assets

Go Return on Assets Ratio

ROA = \frac{NI}{TA}

Other formulas in Profitability Ratio category

Go Business Operating Profit Margin

OPM = \frac{OI}{S} \cdot 100

Go Business Net Profit Margin

NPM = \frac{NI}{S} \cdot 100

Go Pre Tax Margin Ratio

PTI = (\frac{EBT}{S}) \cdot 100

Go Operating Profit Margin

OPM = \frac{OI}{S} \cdot 100

How to Evaluate EBIT Return on Assets?

EBIT Return on Assets evaluator uses Return on Assets = Earnings Before Interest and Taxes/Average Total Assets to evaluate 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 evaluate EBIT Return on Assets using this online evaluator? To use this online evaluator for EBIT Return on Assets, enter Earnings Before Interest and Taxes (EBIT) & Average Total Assets (ATA) and hit the calculate button.

FAQs on EBIT Return on Assets

What is the formula to find EBIT Return on Assets?

The formula of EBIT Return on Assets is expressed as Return on Assets = Earnings Before Interest and Taxes/Average Total Assets. Here is an example- 450 = 450000/225000.

How to calculate EBIT Return on Assets?

With Earnings Before Interest and Taxes (EBIT) & Average Total Assets (ATA) we can find EBIT Return on Assets using the formula - Return on Assets = Earnings Before Interest and Taxes/Average Total Assets.

What are the other ways to Calculate Return on Assets?

Here are the different ways to Calculate Return on Assets-

Return on Assets=Net Income/Total Assets

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: Value
: Unit

EBIT Return on Assets Formula

​GoReturn on Assets Ratio Formula

EBIT Return on Assets Example

EBIT Return on Assets Solution

EBIT Return on Assets Formula Elements

Other Formulas to find Return on Assets

Other formulas in Profitability Ratio category

How to Evaluate EBIT Return on Assets?

FAQs on EBIT Return on Assets

Variable Name

GoReturn on Assets Ratio Formula