Finance
Calculate return on assets (ROA)
=B1/B2How it works in Excel
- B1 is net income.
- B2 is total assets.
- Format the cell as a percentage.
- It is useful for comparing companies in the same industry.
The idea in general
It shows how well a company turns what it owns into profit.
What I assumed
- Net income is in B1 and total assets are in B2.
Check the result on your own data before relying on it.