Result
ROA
—
Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.
This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
ROA = net income ÷ total assets × 100%. Unlike ROE, where the denominator is equity alone, ROA counts every asset the business has — both the ones financed by owners and the ones financed by debt.
That makes ROA a measure of how efficiently assets are used on their own, independent of financing structure: two companies with identical ROA but a different share of debt will end up with different ROE — borrowed money amplifies ROE, but has no effect on ROA.
As with ROE, there's no single "normal" ROA — it depends heavily on how capital-intensive the industry is: businesses with a lot of fixed assets (manufacturing, real estate) usually show lower ROA than asset-light businesses (consulting, software), even at comparable profitability.