The higher the return on assets, the less asset-intensive a company is. An example of an asset-light company would be a software company. As a general rule, a return on assets under 5% is considered an asset-intensive business, while a return on assets above 20% is considered an asset-...
Return on Assets=Net IncomeTotal AssetsReturn on Assets=Total AssetsNet Income Note that some simplified computations for ROA will use the total assets for a single current period rather than average total assets, as in our examples. In the banking industry, where using average total ...
Return on Assets (ROA) Calculator Example Interpretation & Analysis Cautions & Further Explanation Formula So what is the return on asset formula? You can easily calculate a company’s ROA by using the following equation: Return on Total Asset Ratio = Net Income / Total Assets A company’s ne...
The return on net assets (RONA) ratio compares a firm'snet incomewith its assets and helps investors to determine how well the company is generating profit from its assets. The higher a firm's earnings relative to its assets, the more effectively the company is deploying those assets. RONA ...
The Return on Net Assets (RONA) is a performance ratio, which compares the income generated by a business and the fixed assets used to generate the income. Hence, it measures the efficiency of a company in generating returns on the assets it owns.
Return on Assets: Definition, Formula & Example from Chapter 22 / Lesson 47 7.5K 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 form...
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 exp
Return on Assets (ROA) It is the profitability ratio that is used to evaluate the company’s level of efficiency in employing its assets to generate profit. The assets of the company, if not used optimally, will not be able to make the desired amount of profit, and the return will also...
Find out what return on assets ratio is, its importance, how to calculate it, and see an example of how it's used in business. Read here to learn more.
Return on Net Assets Formula Return on Net Assets (RONA) vs. Return on Assets (ROA) Return on Net Assets Calculator (RONA) Return on Net Assets Calculation Example How to Calculate Return on Net Assets (RONA) RONA stands for “return on net assets” and is used to determine if management...