Return on Assets calculator
Return on Assets calculator determines how profitable company's assets are in generating profit. Formula used in Return on Assets calculation is:
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Return on Assets calculator is part of Online financial ratios calculators, complements of our consulting team.
Interpretation of Return on Assets
Return on Assets (ROA) shows how many dollars of earnings result from each dollar of assets the company controls. Return on Assets gives an idea of how efficient management is at using its assets to generate profit. » more on interpretation of Return on Assets
Definitions and terms used in the Return on Assets calculator
- Net Income (also known as earnings, net earnings or net profit): the income that a company has after subtracting costs and expenses from the total revenue. Net income is sometimes called the bottom line.
- Total Assets: the economic resources owned by a business. The assets are divided in two major classes: tangible assets (physical resources) and intangible assets (non-physical resources and rights like goodwill, copyrights, trademarks and patents). In order to have a more accurate figure of return on assets it is recommended to use average total assets.
1. Complementarily, in order to determine the Return on Assets for your business, we offer a calculator free of charge. However, we appreciate a donation if you value our tools and services.
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C. C. D. Consultants Inc. and there exists a visible link to our website.
3. Although C. C. D. Consultants Inc.'s personnel has verified and validated the Return on Assets calculator, C. C. D. Consultants Inc. is not responsible for any outcome derived from its use. The use of Return on Assets calculator is the sole responsibility of the user and the outcome is not meant to be used for legal, tax, or investment advice.