Return on asset = 1275 * 12%
Return on asset = 153
Net income = total assets * return on total assets. net income = 1275 * 0.12 = 153
Yes it is the formula for calculating return on total assets as follows: Return on total asssets = Net income / total assets * 100
Return on total asset = Net Income / Total Assets return on total assets = 26000 / 500000 * 100 Return on total assets = 5.2%
Average rate of return = Net Income / Average Assets Average assets = (opening assets - closing assets) / 2
Return on total assets = net income / total assets *100 Return on total assets = 30000 / 500000 * 100 = 6%
Net Income divided by Average Total Assets
Return on assets is Net income/ total assets. Hence to arrive at net income we should ascertain total assets first, as the return on assets is provided at 8.7%. Total assets is sum of Equity plus Debt plus Other liabilities. We have total equity at USD 520000. Hence debt can be ascertained from the Debt Equity ratio at 1.40. But what about other liabilities? As it is not provided we will not be able to compute total assets and hence net income from the given particulars.
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:Return on assets = (Net income / Total assets) x 100
Primary ratio = Net income/Total assets
RONA is Net Income divided by Fixed Assets + Net Working Capital. Thus, higher the ratio, higher is the return on net assets. So the anwer to your questions is NO. 0.40 to 1 is not a better return on net assets ratio than 0.45 to 1.
debt to assets ratio
I think you mean Net Income plus Interest Expensedivided by Total Average Assets.If that is the case, then it is the formula used to determine Return on Assets.