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Finance Calc Kit
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Return On Assets Calculator

Calculate Return on Assets (ROA), asset productivity, net profit margin, and DuPont asset efficiency ratio with our free online Return On Assets Calculator.

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Return on assets (ROA)

10.00%

$50,000.00 net income on $500,000.00 assets

DuPont ROA decomposition

Asset turnover
1.50x
Net profit margin
6.67%
DuPont ROA (turnover × margin)
10.00%

Net income

$50,000.00

Total assets

$500,000.00

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What is return on assets (ROA)?

Return on assets measures how efficiently a company converts its asset base into net income. It is widely used to compare operational performance across firms with different balance sheet sizes.

For a full profitability dashboard including ROE and margins, use the profitability ratios calculator. To analyze operating profit before interest and taxes, try the EBIT calculator. To measure profit per dollar of shareholder equity with DuPont decomposition, use the return on equity calculator.

ROA formula

ROA=Net IncomeTotal Assets×100%\text{ROA} = \frac{\text{Net Income}}{\text{Total Assets}} \times 100\%

DuPont ROA decomposition

ROA=Asset Turnover×Net Profit Margin\text{ROA} = \text{Asset Turnover} \times \text{Net Profit Margin}

Asset turnover equals revenue divided by total assets. Net profit margin equals net income divided by revenue. Multiplying the two recovers ROA and shows whether profitability comes from margin, asset efficiency, or both.

Worked example

With net income of $50,000 and total assets of $500,000, ROA equals 10%. If revenue is $750,000, asset turnover is 1.50x, net profit margin is 6.67%, and DuPont ROA equals 1.50 × 6.67% = 10%.

Frequently asked questions

What is a good ROA?
ROA varies by industry. Asset-light software firms often show higher ROA than capital-intensive manufacturers. Compare ROA to direct competitors rather than the broad market.
Should I use average or ending total assets?
Analysts often use average total assets ((beginning + ending) / 2) for period ratios. This calculator uses the total assets figure you enter, so use averages when analyzing fiscal-year performance.
How is ROA different from ROE?
ROA measures profit per dollar of assets. ROE measures profit per dollar of shareholder equity. ROE incorporates leverage because equity is a subset of the financing structure.
Why include revenue for DuPont analysis?
Revenue unlocks the DuPont split between margin and turnover. Without revenue, you still get ROA but cannot see which driver dominates performance.
Can I share my inputs?
Yes. Changing fields updates the page URL for easy sharing.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.