Nov 15, 2025 · Divide the EBIT by the company's total net assets to determine the ROTA. To calculate ROTA, obtain the net income figure from a company's income statement, and then add back interest …

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 / Average Total …

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 · ROA = Net Income / Assets. For example, let’s say your net income for the year is $325, and your assets total $5,264. You’d calculate ROA as follows: ROA = $325 / $5,264 = 0.0617 = …

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 turnover. All the numbers …

Jul 10, 2025 · Earnings before interest and taxes ÷ Total assets = Return on total assets. The total assets figure is inclusive of contra accounts, which means that accumulated depreciation and the …

ROA shows how much profit a company makes for every dollar it owns in assets. You find ROA by dividing net income by total assets and multiplying by 100. A higher ROA means the business is …

Aug 28, 2024 · This ratio provides insights into how effectively a company utilizes its assets to generate income and is a valuable tool for investors, analysts, and financial professionals. In this article, we …

Jul 18, 2025 · To calculate ROA, follow these steps: Find Net Income: Obtain the company’s net income from its income statement. Determine Total Assets: Retrieve the total assets from the company’s …

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 balance.