Calculate your payment and more

The return on assets ratio measures how well a company's management team is doing its job. A comparison of net income and average total assets, the ROA ratio reveals how much income management has been able to squeeze from each dollar's worth of a company's assets. Investors and potential investors use this ratio to evaluate a company's leadership.

Many companies, particularly those involved in manufacturing and selling seasonal goods, experience wide swings in assets during the course of a year. To accommodate for these swings and produce a more accurate ratio, the total assets figure used to calculate the ROA should be an average of a firm's assets at the beginning and end of the statement period.

The formula: Net income divided by average total assets

How do I get more personalized results?
Looking for more personalized rates? First compare rates in your area, then return to our loan payment and amortization calculator.