Return on Assets Calculator

Calculate ROA to measure how efficiently a company generates profits from its assets.

Income Data

$
$

Adjustments (Optional)

$
%

Total Assets

$
$
%

Return on Assets (ROA)

22.22%

Excellent - Highly efficient asset utilization

Return per $1 Asset
$0.22
vs Industry
+14.2%

ROA Calculation

Net Income$500K
Beginning Assets$2.00M
Ending Assets$2.50M
Average Assets$2.25M
ROA22.22%

DuPont Decomposition

Profit Margin10.00%

Net Income / Revenue

Γ—
Asset Turnover2.22x

Revenue / Average Assets

=
ROA (DuPont)22.22%

Profit Margin Γ— Asset Turnover

ROA Variations

Basic ROA

Net Income / Avg Assets

22.22%
Adjusted ROA

(Net Income + Interest*(1-Tax)) / Avg Assets

23.89%

Industry Comparison

Your ROA22.22%
Industry Average8%
Income to Match Industry$180K
Income GapExceeds by $320K

Income Sensitivity

Income -20%
17.78%Above avg
Income -10%
20.00%Above avg
Income +0%
22.22%Above avg
Income +10%
24.44%Above avg
Income +20%
26.67%Above avg

Formula: ROA = Net Income / Average Total Assets = $500K / $2.25M = 22.22%