Net Income to Assets

Net Income to Assets

Net Income to Assets =

Net Profit

Total assets

AKA: Return on Assets (ROA)

CALCULATION:

Divide a company’s net profit by its total assets, then multiply the result by 100.

INTERPRET

Measures a company’s profitability, relative to its assets. This ratio provides a way for evaluating the company’s ability to generate money from its assets.

Benchmark: EP HA

ROT: 5% or better is generally considered to be good

Net Income to Assets: