Return on assets

Return on assets: use net income, average total assets. Review the formula, worked example and calculation steps.

Inputs

Use the units shown
RESULT
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Formula & explanation
ROA = net income/average total assets ×100

Variables & units

Net income
currency · minimum -1000000000000, maximum 1000000000000
Average total assets
currency · minimum 0.000001, maximum 1000000000000

Worked example

Income20000 on average assets200000 gives10%.

Assumptions

Use matching periods and the appropriate accounting definition of assets.

Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.

Practice with an example

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