Return on assets online calculation. Return on assets: taking into account all the factors of growth and decline of the company in modern conditions. Return on total assets - value

Return on assets (ROA)- an indicator of the effectiveness of the application and distribution of current and non-current assets of the enterprise. This ratio allows you to assess the company's ability to make a profit, not taking into account financial leverage(the ratio of loan and equity). The return on assets gives an idea of ​​the rationality of using all the assets of the enterprise (in contrast to the return on capital, which characterizes only own funds), and its calculation is more relevant for managers than for investors. The ROA index allows you to analyze the financial reliability, creditworthiness, investment attractiveness organization by calculating the amount of profit for each invested monetary unit.

Return on assets (formula)

Return on assets is the product of net income and total asset value:

The net profit indicator is located in the income statement, the value of assets is in. To reduce the calculation error, the average annual value of assets is substituted into the formula for return on assets: (cost at the beginning + cost at the end of the reporting period) / 2.

Return on assets is also defined as the product of net profit and interest payments per unit, minus the tax rate:

The formula clearly shows that in addition to net profit, the calculation takes into account interest for the use of borrowed funds. This suggests that both equity and loan capital are used in the formation of long-term assets, and both are taken into account when calculating ROA.

Normative value of the ROA indicator

The profitability ratio directly depends on the scope of the organization. Thus, in heavy industry, the indicator will be lower than in the service sector, since the enterprises of the latter need less investment in working capital. In general, return on assets reflects the effectiveness and profitability of asset management, and therefore, the higher it is, the better. If the coefficient began to decline, then one of the assets (non-current or current) does not make a sufficient contribution to the organization's income. A high return on assets indicates that a company is generating more revenue with less

Return on assets (ROA) is a measure of how an enterprise manages existing assets in order to generate revenue. If the ROA is low, the asset management may be inefficient. A high ROA, on the contrary, indicates the smooth and efficient functioning of the company.

The formula for calculating the profitability of a company's assets

ROA is usually expressed as a percentage. The calculation is made by dividing the net profit for the year by the total value of assets. If, for example, a clothing store had a net income of 1 million and a total asset value of 4 million, then the ROA would be calculated as follows:

1/4 x 100 = 25%

The ROA calculation allows you to see the return on investment and assess whether sufficient revenue is generated from the use of available assets.

ROA management

The head of the enterprise studies the ROA at the end of the year. If ROA is high, then good sign that the company is getting the most out of its existing assets. Comparing it with other indicators, such as return on investment, it can be concluded that further investment is advisable, since the enterprise is able to use investments with high efficiency.

Learning about low ROA is vital to effective management company. If this indicator is consistently low, this may indicate that either management is not effectively using existing assets, or these assets no longer have value. For example, in the case of the same clothing store, it may turn out that you can increase profits by reducing retail space, therefore, such an asset as a large area no longer has value.

Banks and potential investors pay attention to ROA and ROI indicators before making a decision on granting a loan or further investment. If similar companies generate high revenues with similar initial data, then investors may go to them or conclude that management is not effectively managing existing assets.

Increasing gross income

ROA can motivate management to do more effective use assets. Seeing that the revenue is not as high as it should be, managers make appropriate adjustments to the activities of the enterprise. Also, ROA can show what improvements can be made to increase gross income through competent asset management. In any case, this is better than endlessly investing in a company, hoping for the best.

Return on assets is one of the indicators for evaluating business performance. The article contains formulas and examples of calculating ROA for balance sheet and net profit.

What is return on assets

Return on assets (ROA) is a ratio that shows the amount of profit per unit cost of capital. It characterizes the effectiveness of the use of all assets of the enterprise.

economic sense

The return on assets shows the amount of profit received by the enterprise from one ruble invested in assets. The indicator is calculated as the ratio of net profit to the average value of assets for the period. The profit in the numerator is taken over a certain period, usually a year, and the value of all assets corresponds to the value of all financial resources employed by the enterprise during this period. Therefore, the return on assets actually determines the rate of return on the capital used by the enterprise for the reporting period.

ROA is measured as a percentage per annum, like all indicators of the time value of capital.

Return on assets formulas

There are different opinions about what kind of profit (gross, from sales, before tax, net) to put in the numerator. Different indicators can be used for different purposes, including intermediate ones, such as EBIT and EBITDA, but in most cases it is most appropriate to use net income (see also how to calculate net profit: formula). However, the issue is not exhausted by this, and for a complete understanding it is necessary to dwell in detail on the economic meaning of the indicator.

The ratio of profit to total assets does not take into account the structure of funding sources. Therefore, when calculating, it is necessary to deduct the paid interest on loans from the composition of costs, then the return on assets will correctly reflect the profitability of all sources of capital of the enterprise.

Find out .

Taking into account the economic meaning of the return on assets, the formula for calculating has the following form:

Return on assets (ROA) = (Net income + Interest paid) x 100% / Average assets.

Return on assets formula by balance sheet

All necessary data are contained in forms No. 1 and No. 2 of financial statements.

Return on assets = line 2400 OFR / (line 1600 BB + line 1600 BB) / 2,

where line 2400 OFR - net profit for the reporting period, reflected in line 2400 of the report on financial results,

line 1600 BB - the value of assets at the beginning of the period, reflected in line 1600 of the balance sheet;

line 160 0BB - the value of assets at the end of the period, reflected in line 1600 of the balance sheet.

How to Quickly Calculate Return on Assets and Other Key Metrics Using Excel

Download the calculation model in Excel, which will help you quickly calculate and evaluate the change in the profitability of assets and other key indicators economic activity companies. As initial data, only the balance sheet and the income statement will be required.

Calculation example

Calculate the return on assets according to the balance sheet of the Rolling Plant.

table 2. Statement of financial results of Metal Rolling Plant JSC for 2016, million rubles

Let's calculate the indicator for 2016 (lines 2400, 2330, 1700) / (3,220 + 5,999) x 100% / ((88,813 + 83,295) / 2) = 10.71 (% per annum).

To complete the picture, it is necessary to track the dynamics of change, for which we calculate and compare with the same indicator of return on assets of the previous year: (4,150 + 6,068) * 100% / ((83,295 + 88,438) / 2) = 11.90% per annum.

When analyzing the financial and economic activities of an enterprise, it is necessary to consider absolute and relative indicators. Absolute indicators are sales, revenue, expenses, loans, profits, and so on. Relative indicators allow the company to conduct a more accurate analysis of the current financial condition of the organization. One of these criteria is the return on assets (KRA).

The return on assets characterizes the efficiency of their use by the enterprise and the impact that they have on the rate of return. The return on assets shows how much profit the organization will receive for each unit of the ruble invested in the active component. RA illustrates the ability of capital property to generate profit.

Return on assets is divided into three interrelated indicators:

• ROAvn - Ratio of non-current assets;
• ROAob is an indicator for current assets;
• ROA - profitability total assets(total).

Fixed assets- the property of the organization, which is reflected in section I of the balance sheet for medium-sized enterprises, and in balance lines 1150 and 1170 - for small institutions. Non-current assets can be used by the organization for a period of more than 1 year. They do not lose their technical properties and quality characteristics during operation and partially transfer the cost to the cost of manufactured goods. Non-current assets are tangible, intangible and financial.

Current assets are property that is entered in section I of the balance sheet for medium-sized organizations, and in balance lines 1210, 1230 and 1250 for small ones. Current assets are subject to use in a period of less than one year or a production cycle and immediately transfer the value to the cost of production produced by the enterprise. BOTH are also subdivided into tangible (stocks), intangible (accounts receivable) and financial (short-term investments).

Total assets is the combined value of BOA and BOTH.

How to calculate the ratio

Calculation formula in general view as follows:

To calculate the return on assets, the net profit indicator is often used. You can also use the profit before tax option in the calculation and calculate the return on total assets (PCA). Profitability formula:

RSA \u003d PDN / Ac,

• PDN - profit before tax;
• Ac - the average cost of property assets for the reporting period.

Profitability net assets(NA) is calculated using the following formula:

RFA = PDN / CA.

When calculating the RA coefficient, you can also use information from accounting and financial statements as of the current date. According to the Order of the Ministry of Finance No. 66n dated July 2, 2010, the return on assets can be calculated using data from the balance sheet and financial statements.

Return on assets - balance sheet formula:

KRA \u003d line 2400 OP OFR / (line 1600 NP BB + line 1600 CP BB) / 2,

• pp. 2400 OP OFR - FC for the reporting period;
• line 1600 NP BB - value of assets at the beginning of the period;
• 1600 CP BB - indicator at the end of the period.

ROAin is also calculated from the values ​​of the balance sheet and is obtained from the ratio of profit for the reporting period and the total of section I (line 1100) of the balance sheet.

Profit is taken from lines 2400 (PV) or 2200 (from sales) of the income statement.

ROA is also calculated by the ratio of income from the income statement and the average value of the cost of BOTH. If it is necessary to calculate the profitability for all indicators, then the final line of section II of the active part of the balance sheet is taken for calculation. When it is necessary to calculate specific view BOTH, information is found from the corresponding line in section II of the balance sheet.

How to parse values

RA is an important tool not only for analysts and financiers who calculate the effective increase in capital and profit in a company, but also for accountants. Correctly calculated ratio shows the real current financial condition enterprises, which is the most valuable information for inspection bodies (Order of the Federal Tax Service No. MM-3-06 / [email protected] dated May 30, 2007). The normative value for the RA index is greater than zero. The deviation from the norm is established for each industry separately (clause 4 of the Order of the Federal Tax Service No. MM-3-06 / [email protected] dated May 30, 2007). However, according to general rule it is considered that the deviation exceeding the average industry standard by 10% or more is critical, that is, the financial and economic activities of the institution are problematic and at a loss.

Calculation example

Calculate CRA for non-profit organization"Strength" for 2017.

To do this, we need data from the balance sheet:

• net profit for the reporting period (line 2400 of the income statement) - 320,000 rubles;
• the amount of active funds at the beginning of the period (line 1600 NP BB) - 4,100,000.00 rubles;
• the same value at the end of the period (line 1600 CP BB) - 5,300,000.00 rubles.

Thus, CRA = 320,000.00 / (4,100,000 + 5,300,000) / 2 = 320,000.00 / 4,700,000.00 = 0.068 × 100% = 6.8%.

The industry average CRA is 5%. Thus, NPO "Sila" is successfully operating and has a high return (efficiency) from financial and economic activities.

Return on assets is one of the indicators for evaluating business performance. The article contains formulas and examples of calculating ROA for balance sheet and net profit.

What is return on assets

Return on assets (ROA) is a ratio that shows the amount of profit per unit cost of capital. It characterizes the effectiveness of the use of all assets of the enterprise.

economic sense

The return on assets shows the amount of profit received by the enterprise from one ruble invested in assets. The indicator is calculated as the ratio of net profit to the average value of assets for the period. The profit in the numerator is taken over a certain period, usually a year, and the value of all assets corresponds to the value of all financial resources involved by the enterprise during this period. Therefore, the return on assets actually determines the rate of return on the capital used by the enterprise for the reporting period.

ROA is measured as a percentage per annum, like all indicators of the time value of capital.

Return on assets formulas

There are different opinions about what kind of profit (gross, from sales, before tax, net) to put in the numerator. Different indicators can be used for different purposes, including intermediate ones, such as EBIT and EBITDA, but in most cases it is most appropriate to use net income (see also how to calculate net profit: formula). However, the issue is not exhausted by this, and for a complete understanding it is necessary to dwell in detail on the economic meaning of the indicator.

The ratio of profit to total assets does not take into account the structure of funding sources. Therefore, when calculating, it is necessary to deduct the paid interest on loans from the composition of costs, then the return on assets will correctly reflect the profitability of all sources of capital of the enterprise.

Find out .

Taking into account the economic meaning of the return on assets, the formula for calculating has the following form:

Return on assets (ROA) = (Net income + Interest paid) x 100% / Average assets.

Return on assets formula by balance sheet

All necessary data are contained in forms No. 1 and No. 2 of financial statements.

Return on assets = line 2400 OFR / (line 1600 BB + line 1600 BB) / 2,

where line 2400 OFR - net profit for the reporting period, reflected in line 2400 of the income statement,

line 1600 BB - the value of assets at the beginning of the period, reflected in line 1600 of the balance sheet;

line 160 0BB - the value of assets at the end of the period, reflected in line 1600 of the balance sheet.

How to Quickly Calculate Return on Assets and Other Key Metrics Using Excel

Download the calculation model in Excel, which will help you quickly calculate and evaluate the change in the return on assets and other key indicators of the company's economic activity. As initial data, only the balance sheet and the income statement will be required.

Calculation example

Calculate the return on assets according to the balance sheet of the Rolling Plant.

table 2. Statement of financial results of Metal Rolling Plant JSC for 2016, million rubles

Let's calculate the indicator for 2016 (lines 2400, 2330, 1700) / (3,220 + 5,999) x 100% / ((88,813 + 83,295) / 2) = 10.71 (% per annum).

To complete the picture, it is necessary to track the dynamics of change, for which we calculate and compare with the same indicator of return on assets of the previous year: (4,150 + 6,068) * 100% / ((83,295 + 88,438) / 2) = 11.90% per annum.