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Return on Assets Ratio Formula

GoEBIT Return on Assets 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{NI}{TA}

ROA - Return on Assets?NI - Net Income?TA - Total Assets?

Return on Assets Ratio Example

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

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

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

2 = \frac{200000}{100000}

2 = \frac{200000}{100000}

2 = \frac{200000}{100000}

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Return on Assets Ratio Solution

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

FIRST Step Consider the formula

ROA = \frac{NI}{TA}

Next Step Substitute values of Variables

∴

ROA = \frac{200000}{100000}

Next Step Prepare to Evaluate

∴

ROA = \frac{200000}{100000}

LAST Step Evaluate

∴

ROA = 2

Return on Assets Ratio 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

Net Income

Net income is a company's total earnings.

Symbol: NI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Income

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.

Symbol: TA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Assets

Other Formulas to find Return on Assets

Go EBIT Return on Assets

ROA = \frac{EBIT}{ATA}

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 Return on Assets Ratio?

Return on Assets Ratio evaluator uses Return on Assets = Net Income/Total Assets to evaluate 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 evaluate Return on Assets Ratio using this online evaluator? To use this online evaluator for Return on Assets Ratio, enter Net Income (NI) & Total Assets (TA) and hit the calculate button.

FAQs on Return on Assets Ratio

What is the formula to find Return on Assets Ratio?

The formula of Return on Assets Ratio is expressed as Return on Assets = Net Income/Total Assets. Here is an example- 2 = 200000/100000.

How to calculate Return on Assets Ratio?

With Net Income (NI) & Total Assets (TA) we can find Return on Assets Ratio using the formula - Return on Assets = Net Income/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=Earnings Before Interest and Taxes/Average Total Assets

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: Unit

Return on Assets Ratio Formula

​GoEBIT Return on Assets Formula

Return on Assets Ratio Example

Return on Assets Ratio Solution

Return on Assets Ratio Formula Elements

Other Formulas to find Return on Assets

Other formulas in Profitability Ratio category

How to Evaluate Return on Assets Ratio?

FAQs on Return on Assets Ratio

Variable Name

GoEBIT Return on Assets Formula