answersLogoWhite

0

What does return on assets mean?

Updated: 4/28/2022
User Avatar

Wiki User

12y ago

Best Answer

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.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What does return on assets mean?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What does return on assets mean to a small company?

"Return on assets, also known as return on investments, is an indication of how well a company uses their holdings to generate a profit. With any company, the higher the return, the better the company is doing."


Return on equity equals return on assets?

When the debt ratio is zero


How do you Compute return on assets if total assets where 500000 dollars and net income was 26000 dollars?

Return on total asset = Net Income / Total Assets return on total assets = 26000 / 500000 * 100 Return on total assets = 5.2%


Return on net operating assets calculation?

How do I calculate the return on operating assets?


Is the return on assets ratio computed by dividing net income by total assets?

Yes it is the formula for calculating return on total assets as follows: Return on total asssets = Net income / total assets * 100


What are the Average Rate of Return ARR?

Average rate of return = Net Income / Average Assets Average assets = (opening assets - closing assets) / 2


Doherty Corporation had net income of 30000 net sales of 1000000 and average total assets of 500000 It's return on total assets is?

Return on total assets = net income / total assets *100 Return on total assets = 30000 / 500000 * 100 = 6%


Could a return on assets show the profit of a business?

Yes, a return on assets, or ROA for short, can be used to show the profitability of a company. A return on assets shows exactly how much profit a company brings in per $1 in assets held.


Operating return on assets is affected by?

Operating Profits and total assets


What is the net income when A firm has an Return of Assets of 12 percent sales 1500 total assets of 1275?

Return on asset = 1275 * 12% Return on asset = 153


How do you calculate return on assets?

Net Income divided by Average Total Assets


What is its net income if a firm has an Return of total assets of 12 percent sales of 1500 and total assets of 1275?

Net income = total assets * return on total assets. net income = 1275 * 0.12 = 153