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# Return On Assets Calculator

Return on asset ratio (ROA) is also referred as return on total assets. It is the profitability ratio that measures the total net income generated over a specified time period by comparing the net income to the total net assets. It can also be said as the total asset that the company manages to profit with its total asset. Its result is displayed as a percentage. Enter the net income and total asset in the return on assets calculator to perform ROA calculation.

## ROA Calculation

Return on asset ratio (ROA) is also referred as return on total assets. It is the profitability ratio that measures the total net income generated over a specified time period by comparing the net income to the total net assets. It can also be said as the total asset that the company manages to profit with its total asset. Its result is displayed as a percentage. Enter the net income and total asset in the return on assets calculator to perform ROA calculation.

#### Formula:

Return on Assets Ratio = Net Income / Total Assets

### Example:

Calculate return on assets ratio of the firm if the net income of the company is \$200000 and total assets are \$2365?

#### Solution:

ROA Ratio = 200000 / 2365
= 84.5666