Return on Assets (ROA) is a financial metric used to measure how efficiently a company uses its assets to generate profit. It shows the percentage of profit a company earns in relation to the total value of its assets. Here’s a simple formula for ROA: ...
Return on assets is calculated by dividing net income by total assets and the result of the calculation can tell how well a business is using its assets to generate net income. Learn more about it's formula, definition and read about examples. ...
Thereturn on assets ratioformula will measure how effectively the firm or the organization can earn a return on its investment made in assets. In other words, ROTA depicts how efficiently the firm or the company or the organization can convert the amount or the money used to purchase those as...
Return on Assets (ROA) vs Return on Equity (ROE) Both ROA and ROE are good measures of performance since both measures how a company utilizes its assets. ROA ROA looks at the use of assets to generate earnings. The ROA ratio gives a better picture of how efficiently a company is utilizi...
The return on assets ratio, often called the return on total assets, is a profitability ratio that measures the net income produced by total assets during a period by comparing net income to the average total assets.
Return on operating assets (ROOA) is an efficiency financial ratio that calculates the percentage return a company earns from investing money in assets used in its operating activities. In other words, this is the percentage profit that a company can expect from the purchase of a new piece of...
Return on Invested Capital (ROIC) Return on Equity (ROE) Return on Assets (ROA) Return on Investment (ROI) Return on Capital Employed (ROCE) Invested Capital (IC) DuPont Analysis Return on Sales (ROS) Equity Multiplier Economic Profit Capital Allocation Ratios Return on Net Assets (RONA) ...
Return On Equity = $1,722,000 / $15,459,500 ≈ 0.11 or 11%Example 2: Total assets and total liabilities of Company B on Jan 1, 2010 were $2,342,000 and $1,383,000. During the year ended December 31, 2011 it made a net profit of $242,000 and its shareholders' equity ...
"Total Assets" into cell A4 "Return on Assets" into cell A5 "=23696000" into cell B3 "=9240626000" into cell B4. To calculate the ROA, enter the formula "=B3/B4 "into cell B5. The resulting return on assets of Netflix, which appears in cell B5 is 0.0026 or 0.26%. ...
Return on assets (ROA) is a financial ratio that indicates how profitable a company is relative to its total assets. It's commonly expressed as a percentage using a company’s net income and average assets. ROA can be used by corporate managers, analysts, and investors to figure out how e...