# return on assets

__Fin__a measure of profitability calculated by expressing a company’s net income as a percentage of total assets.*Abbr.**ROA*__EXAMPLE__Because the ROA formula reflects total revenue, total cost, and assets deployed, the ratio itself reflects a management’s ability to generate income during the course of a given period, usually a year.To calculate ROA, net income is divided by total assets, then multiplied by 100 to express the figure as a percentage:**Net income /total assets × 100 = ROA**If net income is $30, and total assets are $420, the ROA is:**30 /420 = 0.0714 × 100 = 7.14%**A variation of this formula can be used to calculate return on net assets (RONA):**Net income /fixed assets + working capital = RONA**And, on occasion, the formula will separate after-tax interest expense from net income:**Net income + interest expense /total assets = ROA**It is therefore important to understand what each component of the formula actually represents.Some experts recommend using the net income value at the end of the given period, and the assets value from beginning of the period or an average value taken over the complete period, rather than an end-of-theperiod value; otherwise, the calculation will include assets that have accumulated during the year, which can be misleading.

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**return on assets**— ( ROA) A percentage calculated by dividing net income after tax by total assets. Annual income is usually used in the numerator; however, the annualized income for a month, quarter, or half year can be used. Period end assets is often used in… … Financial and business terms**Return on assets**— The Return on Assets (ROA) percentage shows how profitable a company s assets are in generating revenue. ROA can be computed as::mathrm{ROA} = frac{mbox{Net Income{mbox{Total AssetsThis number tells you what the company can do with what it s got … Wikipedia**Return on Assets**— Die Artikel Fundamentalanalyse#GKR und Gesamtkapitalrentabilität überschneiden sich thematisch. Hilf mit, die Artikel besser voneinander abzugrenzen oder zu vereinigen. Beteilige dich dazu an der Diskussion über diese Überschneidungen. Bitte… … Deutsch Wikipedia**Return on assets**— Le Return on Assets (ou ROA) qui peut être traduit en français par taux de rendement de l actif investi ou rentabilité économique est une notion économique d inspiration anglo saxone. Celle ci mesure en pourcentage le rapport entre le résultat… … Wikipédia en Français**return on assets**— Ratio of net income to total assets. See return on equity … Black's law dictionary**return on assets**— Accounting. the amount of profit computed by dividing net income before interest and taxes by the cost of assets, usually expressed as a percentage. Abbr.: ROA * * * … Universalium**return on assets**— An accounting ratio expressing the amount of profit for an accounting period as a percentage of the assets of a company … Accounting dictionary**return on assets**— An accounting ratio expressing the amount of profit for an accounting period as a percentage of the assets of a company … Big dictionary of business and management**return on assets**— Accounting. the amount of profit computed by dividing net income before interest and taxes by the cost of assets, usually expressed as a percentage. Abbr.: ROA … Useful english dictionary**Return on assets Du Pont**— is a financial ratio that shows how the return on assets depends on both asset turnover and profit margin. The Du Pont method breaks out these two components from the return on assets ratio in order to determine the impact of each on the… … Wikipedia