Compare period net income with average beginning and ending assets. Enter your own values below. The calculator shows the formula it uses, a graph and a step-by-step explanation of the result.
Also searched as: ROA, return on assets
How the calculation works
Formula
Average Assets = (Beginning Assets + Ending Assets) / 2; ROA = (Net Income / Average Assets) × 100
ROA uses the simple average of beginning and ending assets to represent resources employed during the period. Zero average assets makes the ratio undefined.
What you enter
- Net income (may be negative)
- Beginning total assets
- Ending total assets
- Display currency (formatting only — no exchange-rate conversion)
What the results show
- Return on assets (ROA)
- Net income
- Average total assets
- Beginning total assets
- Ending total assets
Results are estimates based only on the values and assumptions you enter. Open the detailed analysis to see the graph, the step-by-step story and the stated assumptions, and use the report menu to print, save as PDF, export a schedule to CSV or share the inputs.
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When to use this calculator
How efficiently do assets generate profit? Analysts and investors can use it to get a quick estimate from their own figures.
Worked example
Net income of 60,000, with assets of 900,000 at the start of the year and 1,100,000 at the end, gives average assets of 1,000,000 and an ROA of 6.00%.
Illustrative figures in any currency. Enter your own values in the calculator above.
