To calculate ROTA, divide net income by the average total assets in a given year, or for the trailing twelve month period if the data is available. The same ratio can also be represented as …

Oct 7, 2025 · Return on assets (ROA) measures how efficiently a company generates profit from its total assets. You can calculate return on assets using the formula: ROA = Net Income / …

Guide to Return on Total Assets Formula. Here we explain its examples, how to calculate, examples, and how to improve this ratio in detail.

Feb 18, 2025 · Learn how to calculate return on assets (ROA), assess profitability, understand its formula, and compare industry benchmarks for financial analysis.

Oct 17, 2025 · ROA = Net Income ÷ Total Assets. There are two ways to calculate return on assets -- by using net income and total assets and by using net profit margin and asset …

Mar 13, 2024 · The formula to calculate the return on assets (ROA) ratio divides a company's net income by the average balance of its total assets, i.e. the beginning and ending total assets …

Sep 17, 2025 · ROA is a number that tells you how much profit you get from every dollar of stuff a business owns. It shows how good a company is at turning things like equipment or cash into …

Jul 23, 2025 · A company's ROA can be calculated by dividing its net income by its total assets. A higher ROA denotes that the company is more efficient and productive at managing its assets …

Jul 10, 2025 · The calculation of the return on total assets is earnings before interest and taxes (EBIT), divided by the total assets figure listed on the balance sheet. The EBIT figure is used …

The return on assets ratio formula is calculated by dividing net income by average total assets. This ratio can also be represented as a product of the profit margin and the total asset turnover.