The return on assets ratio is calculated by dividing a company’s net income by its total assets. It’s expressed as a formula like this: Let's say that Sam and Milan both start hot dog stands.

Here’s all you’ll need to know about ROA. Rate of Return on Assets Formula The formula to calculate corporate rate of return ...

The basic return on assets formula is to divide a company's net income by its average total assets. The result is then typically multiplied by 100 to convert the final figure into a percentage.

ROA is a profitability ratio that measures a company’s use of assets in generating profits. Return on assets is a profitability ratio that’s helpful in determining a company’s ability to ...