**Instructions:** You can use this Return on Assets Calculator \((ROA)\), by providing the Net Income and the current total assets in the form below:

## Return on Assets Calculator

More about the *Return on Assets* so you can better use the results provided by this solver. The Return on Assets \((ROA)\) is the ratio of net income to total assets. This ratio is a profitability measure, and it indicates how many dollars in net income a firm has for each $1 in total assets. In order to calculate the ROA, we use the following formula:

What is a good return on assets? In general terms, the largest, the better. A high ROA means that the management team is capable of creating income from the firm's assets.

The Return on Assets (ROA) is a very commonly used financial ratio to measure efficiency in assets management. You can find many other financial ratio calculators in our site, including our current ratio, quick ratio, our days' sales in receivables, and our inventory turnover calculator.

Another interesting measure to look into when investigating about the Return on Asset for a firm is the Total Asset turnover

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