Return On Assets

CALCULATOR

The return on assets ratio indicates how effectively the assets of your business are working to generate profit.

Use information from your business' annual profit and loss statements and balance sheet to input into the calculator.

For information on using this calculator see below.

Formula: Net income/Average Total Assets

Return On Assets Calculator

Net Income:
Average Total Assets:
Return On Assets Ratio:

This ratio gives an indication of the effectiveness of your business in generating a profit. The higher the ratio the greater the return on assets. However this has to be balanced against such factors as risk, sustainability and reinvestment in the business through development costs.

To use this calculator:

You'll find the numbers you need to calculate your return on assets ratio in your company's last and latest balance sheets and latest income statement. You'll need to average the total assets entries from your last and current balance statement.

Fill in your company's net income.
Fill in your company's average total assets.
Press "calculate."

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A return on assets ratio of 0.06:1 would mean the company is pulling in six cents for each dollar of assets.

Like most business ratios, you can learn the most from this one when you compare it to your ROA ratios from previous years and with the industry norms.

NOTE:

The calculator is provided for illustrative purposes only and the calculations are based on the accuracy of the information provided by you. The information about the calculator and the results of the calculations are necessarily general and are only intended as a guide. When deciding on what your business will do, many factors need to be considered, including your business' situation and financial position.

The information that you have placed in this calculator will not be stored.

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