Return on Assets (ROA)
ROA = Net Income / Avg Total Assets. Profitability per dollar of all assets.
Result
General calculation reads
Amazon affiliateAs an Amazon Associate we may earn from qualifying purchases. This does not add cost for you.
How to use this calculator
- Net income + average total assets.
- Compare across same-industry peers.
About this calculator
ROA measures how productively a company uses its asset base. Banks and insurance: 1-2%. Industrial: 4-8%. Tech: 10-20%. Apple/Microsoft: 15-25%. ROA × leverage (assets/equity) = ROE. So a 5% ROA on 4× leverage = 20% ROE. Capital-intensive industries (utilities, telecom, airlines) have low ROA but acceptable ROE due to leverage.
Frequently asked
ROA vs. ROE?+
Industry norms?+
Why is bank ROA so low?+
ROIC vs. ROA?+
When does ROA ≈ ROE?+
Related calculators
More tools you might like
Hand-picked tools that pair well with this one — same audience, same intent.
ROE = Net Income / Avg Shareholders' Equity. Profitability per dollar of equity.
EBITDA = Net Income + Interest + Tax + D&A. Operating earnings before financing + non-cash items.
Current ratio = Current Assets / Current Liabilities. Liquidity benchmark.
D/E = Total Debt / Total Equity. Leverage relative to ownership.
WACC = (E/V)·Re + (D/V)·Rd·(1−T). Blended cost of capital weighted by debt + equity.
Total return, annualized return (CAGR), and dollar gain — with optional IRR mode for regular contributions.