Return on Assets Calculator
Return on assets measures a company's ability to use its assets to create profits.
Working with your return on assets
Return on assets is a common measure, but is based on historical values of assets. For example, fixed assets after accumulated depreciation goes into the calculation, but the book value of a factory may be considerably less than its current market value. Another issue is that return on assets is usually based only on a one year snapshot.
By monitoring changes in your return on assets over time, you can better understand the financial dynamics of your business, identify trends and run the business more effectively. Here is a worksheet you can use to track changes in this and other important measures.