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 …

Calculate ROTA using this formula - ROTA = (Net Income / Total Assets) * 100. This formula expresses ROTA as a percentage, allowing you to assess how effectively a company generates profit from its …

Feb 18, 2025 · Learn how to calculate return on assets (ROA), assess profitability, understand its formula, and compare industry benchmarks for financial analysis.

Mar 13, 2024 · Return on Assets (ROA) = Net Income ÷ Average Total Assets. Where: Furthermore, the calculated ROA is then expressed in percentage form, which allows for comparisons among peer …

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 · The calculation of the return on total assets is earnings before interest and taxes (EBIT), divided by the total assets figure listed on the balance sheet. The EBIT figure is used instead of net …

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 · The ROA formula is simple and widely used in financial analysis: ROA = Net Income / Total Assets * 100

The return on assets ratio formula is calculated by dividing net income by average total assets. This ratio can also be represented as a product of the profit margin and the total asset turnover.