Skip to main content.
Menu
Return on Asset Calculator
04/23/2015

Return on Asset Calculator

Return on assets measures a company's ability to use its assets to create profits.

Definition Return on assets equals net income divided by average total assets.
Net income is the profit of the business after tax.
Average assets is total of beginning and ending assets divided by two.
 
Return on Assets Calculator
Net income after tax $
Total assets at the beginning of the year $
Total assets at the end of the year $
Return on assets


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.

More blog posts

Still have questions?  Email Us  |  Visit your neighborhood branch.  |  877.672.2265
Online Banking Login
  Locate a North Shore Bank branch in your neighborhood. Locations
& ATMs
Contact North Shore Bank. Contact
Us
  Interest Rates Rates Open your account or apply for a loan. Open
Accounts
  Ask Us A Question FAQs Learn more about our Video Teller system. 70 Hours,
7 Days a
Week
Top Frequently Asked Questions
Contact a Mortgage Loan Professional to get you started on the path to home-ownership.
Learn more about North Shore Bank's products and services.
Learn more about chip-enabled debit cards.
Subscribe to our business newsletter.
Pay Your Loan Online - Find out how.


Routing Number: 275071356    Customer Service: 877.672.2265
Routing Number: 275071356 | Customer Service: 877.672.2265 | Member FDIC | Copyright North Shore Bank