Return on Assets Calculator
Determine how efficiently a company uses its assets to generate profit.
CalcSimpler Examples
- $50,000 net income / $200,000 assets ⇒ 25%
- $80,000 net income / $1,000,000 assets ⇒ 8%
FAQ
What is return on assets?
ROA measures profit earned per dollar of assets.
Is a higher ROA better?
Yes, higher ROA indicates more efficient asset use.
Should I use average assets?
Using average assets over the period gives a more accurate ROA.
Can ROA be negative?
Yes, if net income is negative the ROA will also be negative.
Additional Information
No additional information available.
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