Return On Assets Calculator


What is the rate of return on assets?


The first question you encounter is quite simple: "what is the return on investments?"ROA (return on assets) is the business's net profit relative to the value of its assets. In this way, we can evaluate the efficiency of investments. This indicator will show how successfully the business can profit from its resources.ROA equals operating income / total assets. However, you don't have to dig into the nuances because DaProfitClub can do the work for you.

 


How do you calculate the profit on assets?


The formula's calculation is relatively simple, given that you know that ROA is the relationship between the net income and the worth of all the properties. We've previously covered net profits, and total assets are essential.


Dividing the initial number into the second is an additional step. After you've done this, you must remember that since ROA is typically expressed in percentages, you have to multiply the results by 100%.

Here is the exact formula our ROA calculator utilizes to help you make your decision:

(Net Profit (Net Profit) 100 % = ROA

Let's take a look at two cases with two ROA ratios.

For instance,

  • In net profits of $10,580 and
  • Total assets: $8,800

ROA = (10,580 / 8,800) × 100% = 120%

Example B:

  • Net profit: $32,550; and
  • Total assets: $3,100.

ROA = (32,550 / 3,100) × 100% = 1050%

 


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