Return on assets is calculated using the formula. ROA (Return on Assets) - Return on assets. This ratio is designated as ROCA

ROTA is a coefficient equal to the ratio of net profit to the amount of assets. Calculation data contains Balance sheet And Report on financial results (formerly Income Statement). This is a generalized indicator of profitability, reflecting the amount of profit per unit of capital cost (all financial resources of the organization, regardless of sources of financing).

Return on total assets - what it shows

Return on total assets(ROTA) characterizes the degree of efficiency of use of the organization’s property, professional qualifications enterprise management.

Return on Total Assets - Formula

General formula for calculating the coefficient:

Calculation formula based on balance sheet data:

where line 2300 is the line of the Financial Results Report (form No. 2), line 1600 is the line of the Balance Sheet (form No. 1) at the beginning and end of the year.

Return on total assets - value

Indicator growth Return on total assets linked:

with an increase in the organization’s net profit,
with an increase in tariffs on goods and services or a decrease in costs for the production of goods and services,
with an increase in asset turnover.

The decrease is due to:

with a decrease in the organization’s net profit,
with an increase in the value of fixed assets, current and non-current assets,
with a decrease in asset turnover.

Synonyms

economic profitability
economic return on assets

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Profitability is economic indicator, which shows how efficiently resources are used: raw materials, personnel, money and other tangible and intangible assets. You can calculate the profitability of an individual asset, or you can calculate the profitability of the entire company at once.

Profitability is calculated to forecast profits, compare a company to its competitors, or predict the return on an investment. The profitability of an enterprise is also assessed if you are planning to sell it: a company that brings more profit and at the same time spends fewer resources is worth more.

How is profitability calculated?

There is a profitability ratio - it shows how efficiently resources are used. This ratio is the ratio of profit to the resources that were invested to obtain it. The coefficient can be expressed in a specific amount of profit received per unit of invested resource, or it can be expressed as a percentage.

For example, a company produces sour cream. 1 liter of milk costs 5 rubles, and 1 liter of sour cream costs 80 rubles. From 10 liters of milk you get 1 liter of sour cream. From 1 liter of milk you can make 100 milliliters of sour cream, which will cost 8 rubles. Accordingly, the profit from 1 liter of milk is 3 rubles (8 R − 5 R).

And another company produces ice cream. 1 kilogram of ice cream costs 200 rubles. To produce it you need 20 liters of milk at the same price - 5 rubles per liter. From 1 liter of milk you will get 50 grams of ice cream, which will cost 10 rubles. Profit from 1 liter of milk - 5 rubles (10 R − 5 R).

Profitability of the resource “Milk” in the production of ice cream: 5 / 5 = 1, or 100%.

Conclusion: the return on resources in the production of ice cream is higher than in the production of sour cream - 100% > 60%.

The profitability ratio can also be expressed in the amount of resources expended that were needed to obtain a fixed amount of profit. For example, to get 1 ruble of profit in the case of sour cream, you need to spend 330 milliliters of milk. And in the case of ice cream - 200 milliliters.

Types of profitability indicators

To evaluate a company's performance, several profitability indicators are used. Each of them is calculated as the ratio of net profit to a certain value:

For assets - return on assets (ROA).
To revenue - return on sales (ROS).
For fixed assets - return on fixed assets (ROFA).
For the money invested - return on investment (ROI).
To equity - return on equity (ROE).

Profitability threshold

The profitability threshold is the minimum profit that covers the costs. For example, investments, if we are talking about investments, or cost - if we are talking about production. When talking about the profitability threshold, the term “break-even point” is most often used.

Return on assets (ROA)

The ROA indicator is calculated to understand how effectively the company's assets are used - buildings, equipment, raw materials, money - and how much profit they ultimately bring. If the return on assets is below zero, then the company is operating at a loss. The higher the ROA, the more efficiently the organization uses its resources.

ROA = P / TA × 100%,

P - profit for the period of work;

CA is the average price of assets that were on the balance sheet at the same time.

Return on Sales (ROS)

Return on sales shows the share of net profit in the total revenue of the enterprise. When calculating the ratio, instead of net profit, gross profit or profit before taxes and interest on loans can also be used. Such indicators will be called accordingly - the gross profit margin ratio and the operating profitability ratio.

ROS = P/V × 100%,

P - profit;

B - revenue.

Return on fixed assets (ROFA)

Basic production assets- assets that an organization uses to produce goods or services and which are not consumed, but only worn out. For example, buildings, equipment, electrical networks, automobiles, etc. ROFA shows the profitability of the fixed assets that are involved in the production of a product or service.

ROFA = P / Cs × 100%,

P - net profit of the organization for the required period;

Cs is the cost of the company's fixed assets.

Return on Current Assets (RCA)

Current assets are resources that are used by a company to produce goods and services, but which, unlike fixed assets, are completely consumed. Current assets include, for example, money in the company’s accounts, raw materials, finished products in a warehouse, etc. RCA shows the efficiency of management of current assets.

RCA = P / Tso × 100%,

P - net profit for a certain period;

Tso is the cost of current assets that were used to produce a product or service during the same time.

Return on equity (ROE)

ROE shows how well the money invested in the company is performing. Moreover, investments are only authorized or share capital. To calculate the efficiency of using not only own, but also borrowed funds, the return on capital employed indicator - ROCE - is used. It makes it clear how much income the company generates. Return on equity is compared not only with similar indicators of other companies, but also with other types of investments. For example, with interest on bank deposits, to understand whether it makes sense to invest in a business.

ROE = P/K × 100%,

P - profit;

K - capital.

Return on Investment (ROI)

The return on investment indicator is an analogue of return on capital, but it is calculated for any type of investment. For example, bank deposits, stock exchange instruments, etc. ROI shows the return on investment.

ROI = P / Qi × 100%,

P - profit;

Qi is the price of investment.

Profitability of production

Profitability of production is the ratio of net profit to the cost of fixed assets and working capital. In fact, production profitability shows the efficiency of the entire company. Multi-industry enterprises calculate profitability for each type of production separately. You can also calculate the profitability of production a separate type products or the profitability of a specific production area, for example a workshop.

Rpr = P / (Cs + Tso) × 100%,

P - profit;

Cs - the cost of the company's fixed assets;

Tso is the cost of current assets taking into account depreciation and wear.

Project profitability

Project profitability, in contrast to the profitability of already operating production, is an attempt to assess how effective investments in new business. Project profitability is the ratio of future profits to all costs that will be needed to start a business. This indicator is calculated not only by those who start the business, but also by investors - in order to understand whether it makes sense to invest money in this project.

As the ratio of the cost of a business to the investment in its launch.

Rп = Sat / Qi,

Sat - the final cost of the business;

Qi is the volume of investment.

How is the ratio of net profit and depreciation expenses to startup investments.

Rп = (P + A) / Qi,

P - net profit;

A - depreciation;

Qi - costs.

How to increase profitability

Profitability is the ratio of net profit to any other indicator: the value of current assets, fixed assets, capital, investments, etc. To increase profitability, it is necessary either to increase the value of the numerator - profit, or to reduce the denominator - the value of assets, capital, investments, etc. d.

For example, to increase sales profitability, you can improve product quality or develop effective marketing strategy- as a result, demand will increase and, as a result, profit. Or you can reduce the cost of production - then profitability will increase with the same demand.

Each enterprise is interested in stable, full-fledged work, obtaining high results, developing the material and technical base and the level of qualifications of personnel. All this requires investment and careful attention to every penny. Mathematical formulas for calculating economic benefits, which provide a parallel assessment of the professionalism of management personnel, will help support long-term planning.

How financial assessment asset ratio or ROA (English abbreviation ReturnOnAssets) shows the effectiveness of management in obtaining maximum returns from the use of all sources of economic benefit of the enterprise. Capital structure (ratio borrowed money to your own) and its impact on net income is not taken into account.

What numbers are taken into account?

Net profit is the balance of funds after paying taxes, mandatory fees, and budget allocations. This amount can be reserved and sent to working capital or invest in production development.
calculated as a relative value of the value of the property.
Important: taxes in monetary form are usually displayed as a percentage.

The “Profit and Loss Statement” contains information about the tax burden of the organization.
Interest payments are a regular expense incurred by a business using borrowed funds.

Payments = (loan amount * loan interest rate (1 + loan interest rate) number of payments): ((1+ loan interest rate) number of payments – 1)

To calculate the interest rate, you need to know the number of payments per year according to contractual obligations (monthly, quarterly, etc.).

For example, at 16% per annum the interest rate is calculated as follows:

16 / (12 * 100) = 0.13333

Calculation of return on assets ratio

The detailed one looks like this:

ROA = ((Net profit + interest payments) * (1-tax rate) / (enterprise assets)) * 100%

The assets of the enterprise in the denominator are everything cash, including accounts receivable and deposits (liquid sources), as well as raw materials, materials, buildings and structures (less liquid), etc.

The growth of economic results per unit of invested funds depends directly on the tax component and borrowed resources.

Normal profitability value

The higher the capital investments and capital-forming investments of the enterprise, the lower the ROA ratio, which reflects cash flow.

For example, the construction industry, energy, and transport constantly require the introduction of new capacities, updating the material and technical base, as mandatory condition their survival with limited sources of funding. ROA is inversely proportional to high costs and its value decreases.

Firms, large companies, covering the service sector market, do not require basic reconstruction, technical re-equipment of the enterprise and protection environment from the results of its activities. Their profitability far exceeds the manufacturing sector.

The activity of an enterprise is unprofitable if this parameter less than zero. A thorough analysis of the indicators is required.

Return on assets ratio: calculation example

GRAN LLC produces household chemicals. It is necessary to calculate profitability for 2013, 2014 and 2015.

From the “Profit and Loss Statement” we take the values of net profit/loss for each year.

2013 - 934,766 rub.
2014 - 345,870 rub.
2015 - 222,786 rub.

From “ ”, which includes current and non-current asset positions, you will need the following line:

2013 - 10,234,766 rub.
2014 - RUB 15,345,870
2015 - 18,222,786 rub.

Calculation by year

2013 - (934766 / 10234766) * 100 = 9.13%
2014 - (345870 / 15345870) * 100 = 2.25%
2015 - (222786 / 18222786) * 100 = 1.22%

Conclusion: active savings are growing, but profits are steadily decreasing. This enterprise needs to revise its financial policy, improve the quality of management and distribution of cash flows, and search for markets for its products.

Mathematical formulas and conditional numerical components help to quickly understand the financial condition of the subject economic activity. They are valuable for managers, company owners, and people interested in the real state of things.

A company can fully develop only subject to a reasonable probability of obtaining high profits as a result of the purchasing power of the population, finding its own reserves of working cash resources without borrowing them at a high interest rate, and avoiding financial dependence.

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Return on net assets

Return on assets characterizes financial condition companies. If profitability is high, then the company is doing well and the company is a worthy competitor.

To understand whether we are using invested capital correctly and how efficiently funds are working, the return on net assets (RONA) indicator is used. All owners want the net asset value to be higher, as this indicates the right choice of investment object. Here we take the “net assets” indicator, which shows all the property of the company without its liabilities. RONA is the result of the ratio of net profit after tax to the value of non-current assets and net working capital plus fixed assets.

RONA = (Profit (net) / Equity and debt capital (average)) x 100%

Another important calculation that shows business efficiency is the return on assets (ROA) indicator. It is calculated not only to assess the state of affairs in the company; large deviations of this indicator downwards (more than 10% in the industry) can serve as a reason for an audit by the tax authorities.

In order to understand what the company’s industry profitability is, you need to calculate your own and compare. Information for calculating the indicator is taken from the balance sheet and income statement.

Return on assets ratio

Balance formula:

Profit (loss) before tax (line 2300) / per balance sheet currency (line 1600) x 100%.

Example

Olga LLC publishes a newspaper. At the end of the year, the amount of its assets is 1,700,000 rubles, and profit before tax is 210,000 rubles.

The return on current assets of Olga LLC is 12.35% (RUB 210,000 / RUB 1,700,000 x 100).

For example, in 2015, tax authorities set an industry average of 3.9% for return on assets. First of all, we determine limit level return on assets for publishing activities, taking into account acceptable deviations.

The marginal return on assets will be 3.51% (3.9 – (3.9 x 10%)). Let’s compare it with the value we got - 12.35% >3.51%, this means that the assets of Olga LLC are greater than the industry average, taking into account the deviation that is allowed, and there is no reason for an inspection by the tax authorities.

Return on total assets

Return on total assets or return on total assets (ROTA, Return on Total Assets) is an indicator that reveals the effectiveness of using the company's long-term assets to generate profit. This indicator is capable of reflecting the profitability of total assets, their economic benefits and shows how competent management is in managing the business and using assets.

This indicator can be calculated as a result of the relationship operating profit enterprise (EBIT) to the value of assets on average, excluding taxes and interest on loans. ROTA is operating income divided by total assets.

What are total assets? This is the company's property (including: any equipment, vehicles, buildings, stocks, deposits, deposits, securities, intangible assets and other property), as well as cash in accounts and on hand.

Unlike the ROA ratio, when calculating ROTA, the operating profit indicator is used, not net profit. Using this indicator, you can view the assets of the enterprise before paying off its obligations. ROTA shows how good a company is operationally.

For calculations, the average annual value of the company's assets is used. To begin with, we calculate the company’s revenue, from which we subtract the cost of manufactured products and expenses - we get profit from our sales. To this profit we add operating and other income and subtract loan costs, as well as other non-operating expenses. After these manipulations, profit before taxes is obtained.

After this, we divide the profit by the asset balance sheet currency and multiply by 100. As a result, the ROTA coefficient will appear.

This indicator is calculated for the purpose of additional assessment of the company’s efficiency if the company offers a wide range of products, for example. With this approach, it is possible to assess whether certain products bring necessary income. It can push managers to change production policy so that costs are reduced, sales revenue is increased, and debt is reduced.

Of course, this method also has a number of disadvantages, for example, when borrowed funds are attracted, the indicator becomes worse or this indicator does not take into account seasonality. When the indicator is very high, this does not mean that there are funds to pay, for example, dividends to shareholders. Profit may simply be drawn, since ROTA does not indicate whether the company is liquid.

This indicator does not reflect the full financial picture of the enterprise and should not be used as the main method for assessing efficiency.

When analyzing the financial and economic activities of an enterprise, it is necessary to consider absolute and relative indicators. Absolute indicators are sales volume, revenue, expenses, loans, profit, etc. 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 ratio (RA).

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

Return on assets is divided into three interrelated indicators:

ROAvn - Non-current assets ratio;
ROAob is an indicator for current assets;
ROA - return on total assets (total).

Non-current assets are the property of an organization, which is reflected in section I of the balance sheet for medium-sized enterprises, and in balance sheet lines 1150 and 1170 for small institutions. Non-current assets can be used by an 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 included in section I of the balance sheet for medium-sized organizations, and in balance sheet lines 1210, 1230 and 1250 for small ones. Current assets are subject to use in a period of less than one year or production cycle and immediately transfer the cost to the cost of products produced by the enterprise. BOTH are also divided into tangible (inventories), intangible (accounts receivable) and financial (short-term investments).

Total assets are the combined value of SAI and BOTH.

How to calculate the coefficient

Calculation formula in general view as follows:

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

RSA = PDN / Ac,

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

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

RFA = PDN/CA.

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

Return on assets - balance sheet formula:

KRA = line 2400 OP OFR / (line 1600 NP BB + line 1600 KP BB) / 2,

page 2400 OP OFR - PC for the reporting period;
line 1600 NP BB - the value of assets at the beginning of the period;
p. 1600 KP BB - indicator at the end of the period.

ROAvn is also calculated based on the balance sheet values and is obtained from the ratio of the profit for the reporting period and the total of Section I (line 1100) of the balance sheet.

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

ROA is also calculated by the ratio of profit from the income statement and the average cost of OBA. If it is necessary to calculate profitability for all indicators, then the final line of section II of the active part of the balance sheet is taken for the calculation. In the case when it is necessary to calculate a specific type of OBA, the information is found from the corresponding line of Section II of the balance sheet.

How to parse values

RA is an important tool not only for analysts and financiers who calculate indicators for the effective increase in capital and profit in a company, but also for accountants. A correctly calculated coefficient shows the real current financial condition of the enterprise, which is the most valuable information for inspection authorities (Order of the Federal Tax Service No. MM-3-06/333@ dated May 30, 2007). The standard value for the RA index is greater than zero. Deviation from the norm is established for each industry separately (clause 4 of the Order of the Federal Tax Service No. MM-3-06/333@ dated May 30, 2007). However, according to general rule It is believed that a 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 are at a loss.

Calculation example

Let's calculate the KRA 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 financial results statement) - 320,000 rubles;
the amount of active funds at the beginning of the period (line 1600 NP BB) - RUB 4,100,000.00;
similar value at the end of the period (line 1600 KP BB) - RUB 5,300,000.00.

Thus, KRA = 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, the NPO “Strength” operates successfully and has high returns (efficiency) from its financial and economic activities.