this profitability ratio shows how much income is contributed by assets of a company. generally, assets contribute a majority of income earned. ROA is calculated using the following formula:

When the debt ratio is zero

Return on total asset = Net Income / Total Assets

return on total assets = 26000 / 500000 * 100

Return on total assets = 5.2%

How do I calculate the return on operating assets?

Yes it is the formula for calculating return on total assets as follows:

Return on total asssets = Net income / total assets * 100