Return on Assets (ROA)
ROA = Net Income / Avg Total Assets. Profitability per dollar of all assets.
Result
ROA
6.67%
Average
- Net Income$200
- Avg Total Assets$3,000
- ROA6.667%
- TierAverage
Step-by-step
- ROA = NI / Total Assets = 200 / 3000 = 6.67%.
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: per dollar of all assets. ROE: per dollar of equity. ROA × leverage = ROE.
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Return on Equity (ROE)
ROE = Net Income / Avg Shareholders' Equity. Profitability per dollar of equity.
EBITDA Calculator
EBITDA = Net Income + Interest + Tax + D&A. Operating earnings before financing + non-cash items.
Free Cash Flow (FCF)
FCF = EBIT(1−T) + D&A − CapEx − ΔNWC. Cash available to all capital providers.
Current Ratio
Current ratio = Current Assets / Current Liabilities. Liquidity benchmark.
Debt-to-Equity Ratio
D/E = Total Debt / Total Equity. Leverage relative to ownership.
WACC Calculator
WACC = (E/V)·Re + (D/V)·Rd·(1−T). Blended cost of capital weighted by debt + equity.