{
  "id": "roa",
  "version": "e5d64dbd22b7",
  "status": "published",
  "name": "ROA Calculator",
  "question": "What is my ROA?",
  "summary": "Computes return on assets (ROA): net income divided by average total assets, as a percent, with the profit margin and total asset turnover when net sales are given.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/roa-calculator",
  "markdown": "https://www.acalculator.org/finance/roa-calculator.md",
  "kind": "function",
  "method": "Average total assets = (total assets at the start + total assets at the end) ÷ 2. ROA = net income ÷ average total assets × 100. Profit margin = net income ÷ net sales × 100; total asset turnover = net sales ÷ average total assets.",
  "assumptions": [
    "Net income is for the same year as the two balance sheets.",
    "With no start-of-year total, the year-end total assets stand in for the average.",
    "Arithmetic is exact on the typed decimals; percents and the turnover show to 2 decimals and money to the cent, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "ni": {
        "title": "Net income",
        "description": "Net income for the year from the income statement. Negative for a net loss.",
        "type": "number",
        "x-unit": "USD",
        "minimum": -1000000000000000,
        "maximum": 1000000000000000
      },
      "start": {
        "title": "Total assets at the start of the year",
        "description": "Total assets on the balance sheet at the start of the year (last year’s ending balance). Optional.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "end": {
        "title": "Total assets at the end of the year",
        "description": "Total assets on the balance sheet at the end of the year.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "sales": {
        "title": "Net sales",
        "description": "Net sales (revenue) for the year, for the profit margin and asset turnover. Optional.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "roa": {
      "label": "Return on assets (ROA)",
      "description": "Net income ÷ average total assets × 100.",
      "format": "percent"
    },
    "average": {
      "label": "Average total assets",
      "description": "(Start + end) ÷ 2, or the end balance alone when the start is empty.",
      "format": "money"
    },
    "margin": {
      "label": "Profit margin",
      "description": "Net income ÷ net sales × 100.",
      "format": "percent"
    },
    "turnover": {
      "label": "Total asset turnover",
      "description": "Net sales ÷ average total assets.",
      "format": "number"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "ni": 35000,
      "start": 200000,
      "end": 250000,
      "sales": 120000
    },
    "outputs": {
      "roa": 15.555555555555555,
      "average": 225000,
      "margin": 29.166666666666668,
      "turnover": 0.5333333333333333
    },
    "text": "Net income of $35,000.00 on average total assets of $225,000.00 is a return on assets of 15.56%."
  },
  "examples": [
    {
      "given": {
        "ni": 35000,
        "start": 200000,
        "end": 250000,
        "sales": 120000
      },
      "expect": {
        "roa": 15.555555555555555,
        "average": 225000,
        "margin": 29.166666666666668,
        "turnover": 0.5333333333333333
      },
      "source": "OpenStax, Principles of Finance, 6.6 Profitability Ratios and the DuPont Method (return on total assets = net income ÷ average total assets; average total assets = (beginning + ending total assets) ÷ 2; Clear Lake Sporting Goods: net income $35,000, total assets $200,000 and $250,000, net sales $120,000, ROA 16%, profit margin 29%, total asset turnover 0.53). https://openstax.org/books/principles-finance/pages/6-6-profitability-ratios-and-the-dupont-method; hand calculation in content.mdx: (200,000 + 250,000) ÷ 2 = 225,000; 35,000 ÷ 225,000 = 15.56% (OpenStax rounds to 16%)"
    },
    {
      "given": {
        "ni": 50000,
        "end": 400000
      },
      "expect": {
        "roa": 12.5,
        "average": 400000
      },
      "source": "OpenStax, Principles of Finance, 6.6 Profitability Ratios and the DuPont Method (return on total assets = net income ÷ average total assets; average total assets = (beginning + ending total assets) ÷ 2; Clear Lake Sporting Goods: net income $35,000, total assets $200,000 and $250,000, net sales $120,000, ROA 16%, profit margin 29%, total asset turnover 0.53). https://openstax.org/books/principles-finance/pages/6-6-profitability-ratios-and-the-dupont-method; hand calculation in content.mdx: 50,000 ÷ 400,000 = 12.5%"
    },
    {
      "given": {
        "ni": -12000,
        "start": 150000,
        "end": 170000
      },
      "expect": {
        "roa": -7.5,
        "average": 160000
      },
      "source": "OpenStax, Principles of Finance, 6.6 Profitability Ratios and the DuPont Method (return on total assets = net income ÷ average total assets; average total assets = (beginning + ending total assets) ÷ 2; Clear Lake Sporting Goods: net income $35,000, total assets $200,000 and $250,000, net sales $120,000, ROA 16%, profit margin 29%, total asset turnover 0.53). https://openstax.org/books/principles-finance/pages/6-6-profitability-ratios-and-the-dupont-method; hand calculation in content.mdx: −12,000 ÷ 160,000 = −7.5%"
    },
    {
      "given": {
        "ni": 1234.56,
        "start": 10000.1,
        "end": 12345.67,
        "sales": 5000.25
      },
      "expect": {
        "roa": 11.04960804662359,
        "average": 11172.885,
        "margin": 24.689965501724913,
        "turnover": 0.4475343655644894
      },
      "source": "OpenStax, Principles of Finance, 6.6 Profitability Ratios and the DuPont Method (return on total assets = net income ÷ average total assets; average total assets = (beginning + ending total assets) ÷ 2; Clear Lake Sporting Goods: net income $35,000, total assets $200,000 and $250,000, net sales $120,000, ROA 16%, profit margin 29%, total asset turnover 0.53). https://openstax.org/books/principles-finance/pages/6-6-profitability-ratios-and-the-dupont-method; hand calculation in content.mdx: (10,000.10 + 12,345.67) ÷ 2 = 11,172.885; 1,234.56 ÷ 11,172.885 = 11.05% (Python Fraction)"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 6.6 Profitability Ratios and the DuPont Method: return on total assets = net income ÷ average total assets; average total assets = (beginning total assets + ending total assets) ÷ 2; profit margin = net income ÷ net sales; total asset turnover = net sales ÷ total assets; Clear Lake Sporting Goods (net income $35,000, total assets $200,000 and $250,000, net sales $120,000; ROA 0.16, profit margin 0.29, turnover 0.53, all rounded). https://openstax.org/books/principles-finance/pages/6-6-profitability-ratios-and-the-dupont-method (retrieved 2026-10-19)"
  ],
  "related": [
    "roe",
    "roic",
    "asset-turnover",
    "profit"
  ],
  "changelog": []
}