Return on Assets (ROA)
Net income as a percentage of total assets
FORMULA
ROA % = (Net Income / Total Assets) × 100
Alternate Calculations
Annualized
(Annual Net Income / Average Total Assets) × 100What is Return on Assets?
Return on Assets (ROA) measures how efficiently a company uses its assets to generate profit. It shows how much profit is generated for every dollar of assets owned. ROA is useful for comparing companies of different sizes in the same industry and for evaluating management's effectiveness at deploying capital.
Chart
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325,000netIncome · Q4Return on Assets
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Sample Data
| quarter | netIncome | totalAssets | roa |
|---|---|---|---|
| Q1 | 250,000 | 2,000,000 | 12.5 |
| Q2 | 275,000 | 2,050,000 | 13.4 |
| Q3 | 300,000 | 2,100,000 | 14.3 |
| Q4 | 325,000 | 2,150,000 | 15.1 |
Required Data Columns
Net IncomeTotal Assets