Return on Assets (ROA) Calculator

Calculate ROA



Formula

To calculate the Return on Assets (ROA):

\[ ROA = \frac{NIA}{AV} \times 100 \]

Where:

What is Return on Assets (ROA)?

Return on Assets (ROA) is a measure of the total monetary return or growth an asset has generated over time. It evaluates the efficiency of a company's use of its assets to generate profit. A higher ROA indicates more effective use of assets, while a lower ROA suggests less effective use. ROA is often used by investors and analysts to assess the profitability and operational efficiency of a company.

Example Calculation 1

Let's assume the following values:

Use the formula:

\[ ROA = \frac{50{,}000}{200{,}000} \times 100 = 25\% \]

The Return on Assets (ROA) is 25%.

Example Calculation 2

Let's assume the following values:

Use the formula:

\[ ROA = \frac{80{,}000}{400{,}000} \times 100 = 20\% \]

The Return on Assets (ROA) is 20%.