0
Return on Assets percentage shows us how profitable a company's assets are in terms of generating revenue. This number tells us what the company can do with the assets it has i.e., how many rupees the company has earned based on every rupee of asset they control. It is a useful number for comparing two evenly matched or competing companies in the same industry. This number may vary widely when we compare companies across industries. Usually companies in capital intensive industries will have lower return on assets.
Formula:
ROA = Net Income from Assets / Total Assets
Still curious? Ask our experts.
Chat with our AI personalities
Rafa
Fran
MaxineAdd your answer:
Earn +20 pts
How do you Compute return on assets if total assets where 500000 dollars and net income was 26000 dollars?
Return on total asset = Net Income / Total Assets return on total assets = 26000 / 500000 * 100 Return on total assets = 5.2%
Return on net operating assets calculation?
How do I calculate the return on operating assets?
What does return on assets mean?
Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.
Operating return on assets is affected by?
Operating Profits and total assets
How could the return on assets indicator provide relevant data on the profitability of a company?
The Return on Assets Indicator or ROA shows the relationship between a company's profits to its actual assets. It is a measure of the company's profitability.
