Return on Total Assets

Posted in Finance, Accounting and Economics Terms, Total Reads: 746
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Definition: Return on Total Assets

Return on Assets is a profitability ratio which tells us how much a company’s total assets is helping it to generate net income. It is calculated as


Return on Total Assets  =    Net Income

                                             Total Assets

Example:

For 2011, Company A has a net income of Rs 100 Crores. Total Assets of 1000 crores.

Return on Total assets  =   100/1000

                                  =    10%

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