Return on Operating Assets Formula

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Return on Operating Assets indicates how effectively the institution utilizes its assets to generate operating income. Check FAQs
ROA=modu̲sNIOpA
ROA - Return on Operating Assets?NI - Net Income?OpA - Operating Assets?

Return on Operating Assets Example

With values
With units
Only example

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

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

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

0.3448Edit=modu̲s200000Edit580000Edit
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Return on Operating Assets Solution

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

FIRST Step Consider the formula
ROA=modu̲sNIOpA
Next Step Substitute values of Variables
ROA=modu̲s200000580000
Next Step Prepare to Evaluate
ROA=modu̲s200000580000
Next Step Evaluate
ROA=0.344827586206897
LAST Step Rounding Answer
ROA=0.3448

Return on Operating Assets Formula Elements

Variables
Functions
Return on Operating Assets
Return on Operating Assets indicates how effectively the institution utilizes its assets to generate operating income.
Symbol: ROA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Net Income
Net Income represents the amount of money remaining after deducting all expenses.
Symbol: NI
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Operating Assets
Operating Assets are the assets that a company uses in its day-to-day operations to generate revenue.
Symbol: OpA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
modulus
Modulus of a number is the remainder when that number is divided by another number.
Syntax: modulus

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How to Evaluate Return on Operating Assets?

Return on Operating Assets evaluator uses Return on Operating Assets = modulus(Net Income)/Operating Assets to evaluate the Return on Operating Assets, The Return on Operating Assets is a financial metric that assesses the efficiency and profitability of a financial institution's core operations relative to its operating assets. Return on Operating Assets is denoted by ROA symbol.

How to evaluate Return on Operating Assets using this online evaluator? To use this online evaluator for Return on Operating Assets, enter Net Income (NI) & Operating Assets (OpA) and hit the calculate button.

FAQs on Return on Operating Assets

What is the formula to find Return on Operating Assets?
The formula of Return on Operating Assets is expressed as Return on Operating Assets = modulus(Net Income)/Operating Assets. Here is an example- 0.344828 = modulus(200000)/580000.
How to calculate Return on Operating Assets?
With Net Income (NI) & Operating Assets (OpA) we can find Return on Operating Assets using the formula - Return on Operating Assets = modulus(Net Income)/Operating Assets. This formula also uses "Modulus Function" function(s).
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