The-definition.com

Definition

Return on assets

Return on assets is an overall measure of profitability computed by dividing net income by average assets.

 Return on Assets = Net Income ÷ Average Assets

Share it:  Cite

More from this Section

  • Indirect method
    Indirect method is a method of preparing a statement of cash flows in which net income ...
  • Annuities
    In addition to receiving the face value of a bond at maturity, an investor also receives ...
  • Job cost sheet
    An essential accounting record in assigning costs to jobs is a job cost sheet. A job cost ...
  • Bad debts expense
    Bad debts expense is an expense account to record uncollectible receivables. Individuals ...
  • Consigned goods
    Consigned goods referred as goods that held for sale by one party (the consignee) although ...