Return on Assets Excel Template

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 Return on Assets (ROA) Formula

“ROA = Net Income / Average Total Assets”

Jagriti Capital Inc shows a net income of $20 million in current operation and owns $20 million
worth of assets at the beginning of the year and $25 million worth of assets at the end of the
year as per the balance sheet. Now what is the return on assets Jagriti Capital Inc.?

Here,
Net Income $ 20,000,000
Assets at the beginning of the
year $ 20,000,000
Assets at the end of the year $ 25,000,000

Average Total Assets = (Assets at the beginning of the year + Assets at the end of the year)/2

Average Total Assets $ 22,500,000

"ROA = Net Income / Average Total Assets"

ROA 0.89
eration and owns $20 million
h of assets at the end of the
agriti Capital Inc.?

the end of the year)/2