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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?
Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.
distributions to owners
Operating Profits and total assets
Increase in total assets generates increase in either one of liablity account or ultimately an equity account.
the procedures designed to safegaurd a companys assets and ensure efficient and appropriate account data are called?
increase the company's total assets.
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
Average rate of return = Net Income / Average Assets Average assets = (opening assets - closing assets) / 2
If you look at what Return on Assets is comprised of, Net Profit Margin and the Total Asset Turnover, if the firm is having a very slow turnover, the ROA will be declining if the turnover is greater in magnitude to the NPM.
Return on assets (or ROA) means how profitable a company is based on their total assets. The ROA is calculated by dividing a companies total earnings by it's total assets. It is often also called return on investment.
distributions to owners
Return on total assets = net income / total assets *100 Return on total assets = 30000 / 500000 * 100 = 6%