Return on assets (ROA) calculator
Shows how much profit the company generates from everything it owns, whatever the financing mix.
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How to use it
- Enter net income for the period, total assets at start (or a single figure) and total assets at end (optional).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Average assets = (opening assets + closing assets) ÷ 2, or the opening figure alone. ROA = net income ÷ average assets × 100.
Example
Inputs: Net income for the period = 80,000, Total assets at start (or a single figure) = 1,500,000, Total assets at end (optional) = 1,700,000. Result: Return on assets: 5%; Average assets used: 1,600,000.00.
Limits and caveats
- Varies widely by sector; asset-heavy firms such as factories show lower ROA than software companies.
- Assets at book value can differ from their market value.
Questions about this tool
How is ROA different from ROE?
ROA divides profit by all assets, ROE by owners equity only, so the gap between them reflects debt.
Can ROA be negative?
Yes, when the company makes a net loss for the period.
Why average assets rather than the year-end figure?
Assets change during the year, and the average matches the period in which the profit was earned.