How it works
ROA = net income / average of opening and closing total assets × 100.
Input definitions
- Net income for the period
- Enter the value in the labeled unit.
- Opening total assets
- Enter the value in the labeled unit.
- Closing total assets
- Enter the value in the labeled unit.
A worked example
- Net income for the period
- 20000
- Opening total assets
- 180000
- Closing total assets
- 220000
Assumptions & limits
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-18. Content checked against the stated method and examples. Our verification approach.
Common questions
Should I use closing assets only?
This tool uses the simple opening/closing average. A time-weighted average may better represent major purchases or disposals during the year.
How does Return on average assets work?
ROA = net income / average of opening and closing total assets × 100.
What should I check before using Return on average assets?
Uses the accounting classifications, periods and policies you enter. Illustrative management-accounting model; it is not an audited statement, filing or determination of local accounting or tax compliance.