# Return on Assets Calculator

Return on Assets Calculator

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## What is Return on Assets?

Return on Assets (ROA) is a financial ratio that measures the profitability of a company by comparing its total net income to its total assets. It is calculated by dividing the company’s net income by its total assets. ROA is a useful metric for investors to assess the financial health of a company and its ability to generate profits from its assets.

## What is Return on Assets Calculator?

A Return on Assets Calculator is a tool used to measure the profitability of a company by calculating the ratio of its total net income to its total assets. This ratio is used to assess the efficiency of a company’s management in generating profits from its assets. It is also used to compare the profitability of different companies in the same industry.

## How to Calculate Return on Assets?

Return on Assets (ROA) is a financial ratio that measures the profitability of a business in relation to its total assets. It is calculated by dividing the net income of a business by its total assets. Formula: Return on Assets (ROA) = Net Income / Total Assets Example: If a business has a net income of \$50,000 and total assets of \$200,000, then the Return on Assets (ROA) would be calculated as follows: Return on Assets (ROA) = \$50,000 / \$200,000 = 0.25 or 25%

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