Insert the information in the form and the calculator will determine the return on assets.

What is the return on assets?

Return on assets is a financial ratio that indicates the profitablility of a company relative to it's total assets.

How to calculate return on assets?

To calculate return on assets you should use the following formula:
return on assets = net income / total assets

example: A company has a net income of $70,000 and $560,000 worth total assets, calcualte ROA of this company?

Using the return on assets formula the answer will be:
return on assets = net income / total assets
return on assets = $70,000 / $560,000
return on assets = 0.125

Why use return on assets?

Return on assets are important because it can be used to determine how efficiently a company uses it's assets to generate profits.