Kittikorn Nimitpara / Getty Images Return on assets (ROA) is a profitability ratio that shows how much profit a company is generating from its assets. As such, it is seen as an indicator of how ...

How is ROA calculated? ROA may seem like a complex metric at first glance, but the ROA calculation is usually pretty straightforward. The basic return on assets formula is to divide a company's ...

Divide the company’s net profit by the value of its assets to get ROA. It’s simple to calculate ROA, as we saw above: Divide a company’s net profit by its total assets, then multiply the ...

To calculate ROE, average shareholders' equity ... For example, as of Feb. 12, 2025, Apple's ROE averaged 146.59% over 12 months. ROA reveals the profit a company posts for every dollar of its ...

ROA is a profitability ratio that measures a company’s use of assets in generating profits. Return on assets is a profitability ratio that’s helpful in determining a company’s ability to ...

But, how exactly can you calculate what a company’s return on assets is? Here’s all you’ll need to know about ROA. Rate of ...

Calculate ROA by dividing a company’s net income by its total assets. The resulting percentage measures how much profit is generated for each dollar of assets owned by the company. Several ...

Calculate ROA by dividing net earnings by total assets for an unlevered company. ROA indicates how efficiently a firm uses assets to generate profits. Higher ROA values suggest better financial ...

ROA tells how much profit a company makes for each dollar of its assets. Two methods to calculate ROA: using net income and assets, or profit margin and turnover. High ROA suggests a company uses ...

It does not include unpaid liabilities, which is one weakness of the ROA calculation. While this formula shows you how well the company has performed based on its current income statements ...

Both are used to calculate its ROA. Return on assets is important to keep in mind because it’s how a company’s managers and outside analysts determine how effectively a company is using its ...

Return on assets (ROA) is a profitability ratio that shows how much profit a company is generating from its assets. As such, it is seen as an indicator of how efficiently a company's management is ...