This return on assets template will help you calculate return on assets using net income and the amount of start of period and end of period assets.
This is what the return on assets template looks like:
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Return on Assets (ROA) is a type of return on investment (ROI) that measures the profitability of a business in relation to its total assets. This ratio indicates how well a company is performing by comparing the profit it’s generating to the capital it’s invested in assets. The higher the return, the more productive and efficient management is in utilizing economic resources.
The ROA formula is: ROA = Net Income / Average Assets or ROA = Net Income / End of Period Assets
Net Income is equal to net earnings or net income in the year (annual period)
Average Assets is equal to ending assets minus beginning assets divided by 2
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