Return On Assets Formula

Return on asset or ROI can be calculated by dividing the net income by the average total assets. It is also referred as return on investment. It is a measure of profitability of the company in relation to its total assets. Return on assets formula is a straightforward calculation and its components are covered in the company's financial statements. The ROI ratio illustrates how well management is using the company's total assets to get the profit.


Return on Assets Ratio = Net Income / Total Assets

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The return on assets ratio is also called as return on investment. The result of ROI is usually displayed in percentage. You can use this return on assets formula to manually calculate ROI.

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