How to calculate the return on assets of an enterprise. Return on assets ratio: taking into account all factors of growth and decline of the company in modern conditions Return on assets online calculation

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 without taking into account financial leverage (the ratio of loan and equity capital). The return on assets gives an idea of ​​the rationality of using all the assets of the enterprise (in contrast to the return on equity, 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 of an 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

Definition

Return on assets (returnonassets, ROA) - financial ratio characterizing the return on the use of all assets of the organization. The ratio shows the organization's ability to generate profit without taking into account the structure of its capital (financial leverage), the quality of asset management. Unlike the indicator of "own capital", this indicator takes into account all the assets of the organization, and not just own funds. Therefore, it is less interesting for investors.

Calculation (formula)

Return on assets is calculated by dividing net profit (usually for the year) by the value of all assets (i.e., the organization's balance sheet):

Return on Assets = Net Income / Assets

The result of the calculation is the amount of net profit from each ruble invested in the assets of the organization. Often, in order to get a more visual, the percentage in the formula is multiplied by 100. In this case, the indicator can also be interpreted as "how many kopecks each ruble invested in the assets of the organization brings."

For more accurate calculations, not the value on a specific date is taken as the "Assets" indicator, but the arithmetic average - assets at the beginning of the year plus assets at the end of the year are divided by 2.

The net profit of the organization is taken according to the "Profit and Loss Statement", assets - according to the Balance Sheet.

If the calculation is made not for the year, but for another period, then to obtain a result in a form comparable to the annual one, the formula is used (in particular, in the program "Your Financial Analyst"):

Return on assets \u003d Revenue * (365 / Number of days in the period) / ((Assets at the beginning + Assets at the end) / 2)

Normal value

Return on assets is highly dependent on the industry in which the company operates. For capital-intensive industries (such as, for example, rail transport or electricity), this figure will be lower. For service companies that do not require large capital and working capital investments, the return on assets will be higher.

In the system of performance indicators of enterprises, the most important place belongs to profitability.

Profitability is a use of funds in which the organization not only covers its costs with income, but also makes a profit.

Yield, i.e. enterprise profitability, can be assessed using both absolute and relative indicators. Absolute indicators express profit and are measured in value terms, i.e. in rubles. Relative indicators characterize profitability and are measured as a percentage or in the form of coefficients. Profitability indicators are much less influenced than profits, since they are expressed by various ratios of profit and advanced funds(capital), or profit and expenses incurred(costs).

In the analysis, the calculated profitability indicators should be compared with the planned ones, with the corresponding indicators of previous periods, as well as with data from other organizations.

Return on assets

The most important indicator here is the return on assets (in other words, the return on property). This indicator can be determined by the following formula:

Return on assets- this is the profit remaining at the disposal of the enterprise, divided by the average value of assets; The result is multiplied by 100%.

Return on assets = (net profit / average annual value of assets) * 100%

This indicator characterizes the profit received by the enterprise from each ruble advanced for the formation of assets. The return on assets expresses the measure of profitability in a given period. Let us illustrate the procedure for studying the rate of return on assets according to the analyzed organization.

As can be seen from the table, the actual level of return on assets exceeded the planned level by 0.16 points. Two factors had a direct impact on this:

• above-planned increase in net profit in the amount of 124 thousand rubles. increased the level of return on assets by: 124 / 21620 * 100% = + 0.57 points;
• overplanned increase in the assets of the enterprise in the amount of 993 thousand rubles. reduced the level of return on assets by: + 0.16 - (+ 0.57) = - 0.41 points.

The total influence of the two factors (balance of factors) is: +0.57+(-0.41) =+0.16.

So, the increase in the level of return on assets in comparison with the plan took place solely due to an increase in the amount of the net profit of the enterprise. At the same time, the rise in the average cost, others, also lowered the level return on assets.

For analytical purposes, in addition to indicators of profitability of the entire set of assets, indicators of profitability of fixed assets (funds) and profitability of working capital (assets) are also determined.

The indicator of profitability of fixed production assets (otherwise called the indicator of capital profitability) is represented as the following formula:

Profit remaining at the disposal of the enterprise multiplied by 100% and divided by the average cost of fixed assets.

The profit remaining at the disposal of the enterprise multiplied by 100% and divided by the average value of current assets.

ROI

The indicator of return on invested capital (return on investment) expresses the effectiveness of the use of funds invested in the development of this organization. Return on investment is expressed by the following formula:

Profit (before income tax) 100% divided by the currency (total) of the balance sheet minus the amount of short-term liabilities (total of the fifth section of the balance sheet liability).

Return on equity

In order to receive an increment due to the use of a loan, it is necessary that the return on assets minus interest for using the loan be greater than zero. In this situation, the economic effect obtained as a result of using the loan will exceed the costs of attracting borrowed sources of funds, that is, the interest for using the loan.

There is also such a thing as financial leverage, representing the specific weight (share) of borrowed sources of funds in the total amount of financial sources for the formation of the organization's property.

The ratio of the sources of formation of the organization's assets will be optimal if it provides the maximum increase in the return on equity in combination with an acceptable amount of financial risk.

In some cases, it is advisable for an enterprise to receive loans even in conditions where there is a sufficient amount of equity capital, since the return on equity increases due to the fact that the effect of investing additional funds can be significantly higher than the interest rate for using a loan.

The creditors of this enterprise, as well as its owners (shareholders), expect to receive certain amounts of income from the provision of funds from this enterprise. From the point of view of creditors, the profitability indicator (price) of borrowed funds will be expressed by the following formula:

The fee for using borrowed funds (this is the profit for lenders) multiplied by 100% divided by the amount of long-term and short-term borrowed funds.

Return on total capital investment

A generalizing indicator expressing the efficiency of using the total amount of capital available to the enterprise is return on total capital investment.

This indicator can be determined by the formula:

The costs associated with attracting borrowed sources of funds plus the profit remaining at the disposal of the enterprise multiplied by 100% divided by the amount of total capital employed (balance sheet currency).

Product profitability

The profitability of products (profitability of production activities) can be expressed by the formula:

Profit remaining at the disposal of the enterprise multiplied by 100% divided by the total cost of goods sold.

In the numerator of this formula, the indicator of profit from the sale of products can also be used. This formula shows how much profit the company has from each ruble spent on the production and sale of products. This indicator of profitability can be determined both as a whole for this organization, and for its individual divisions, as well as for individual types of products.

In some cases, the profitability of products can be calculated as the ratio of the profit remaining at the disposal of the enterprise (profit from the sale of products) to the amount of proceeds from the sale of products.

• from changes in the structure of products sold. An increase in the share of more profitable types of products in the total amount of products contributes to an increase in the level of profitability of products .;
• a change in the cost of production has an inverse effect on the level of profitability of products;
• change in the average level of selling prices. This factor has a direct impact on the level of product profitability.

Profitability of sales

One of the most common measures of profitability is the return on sales. This indicator is determined by the following formula:

Multiply the profit from the sale of products (works, services) by 100% and divide by the proceeds from the sale of products (works, services).

Profitability of sales characterizes the share of profit in the composition of the proceeds from the sale of products. This indicator is also called the rate of return.

If the profitability of sales tends to decrease, then this indicates a decrease in the competitiveness of products in the market, as it indicates a reduction in demand for products.

Consider the order of factor analysis of the return on sales indicator. Assuming that the product structure has remained unchanged, we determine the impact on the profitability of sales of two factors:

• change in the price of products;
• change in the cost of production.

Let's denote the profitability of sales of the base and reporting period, respectively, as and .

Then we get the following formulas expressing the profitability of sales:

Having presented the profit as the difference between the proceeds from the sale of products and its cost, we obtained the same formulas in a transformed form:

Legend:

∆K— change (increment) of profitability of sales for the analyzed period.

Using the method (method) of chain substitutions, we determine in a generalized form the influence of the first factor - changes in the price of products - on the indicator of profitability of sales.

Then we calculate the impact on the profitability of sales of the second factor - changes in the cost of production.

Where ∆K N- change in profitability due to changes in the price of products;

∆K S- change in profitability due to changes. The total impact of the two factors (balance of factors) is equal to the change in profitability compared to its base value:

∆K = ∆K N + ∆K S,

So, increasing the profitability of sales is achieved by increasing prices for products sold, as well as reducing the cost of products sold. If the share of more cost-effective types of products increases in the structure of products sold, this circumstance also increases the level of profitability of sales.

In order to increase the level of profitability of sales, the organization must focus on changes in market conditions, monitor changes in product prices, constantly monitor the level of costs for production and sales of products, and also implement a flexible and reasonable assortment policy in the field of production and sales of products.

Consider the profitability ratios of the enterprise. In this article, we will consider one of the key indicators for assessing the financial condition of an enterprise – return on assets.

Return on assets refers to the group of coefficients "Profitability". The group shows the effectiveness of cash management in the enterprise. We will consider the return on assets (ROA) ratio, which shows how much money is accounted for per unit of assets a company has. What are enterprise assets? In simpler words, this is his property and his money.

Consider the formula for calculating the return on assets (ROA) with examples and its standard for enterprises. It is advisable to start studying the coefficient from its economic essence.

Return on assets. Indicators and direction of use

Who uses the return on assets ratio?

It is used by financial analysts to diagnose the performance of an enterprise.

How to use the return on assets ratio?

This ratio shows the financial return on the use of the company's assets. The purpose of its use is to increase its value (but taking into account, of course, the liquidity of the enterprise), that is, with the help of it, a financial analyst can quickly analyze the composition of the company's assets and evaluate them as a contribution to the generation of general income. If any asset does not contribute to the income of the enterprise, then it is advisable to refuse it (sell, remove it from the balance sheet).

In other words, return on assets is an excellent indicator of the overall profitability and performance of an enterprise.

. Calculation formula according to balance sheet and IFRS

Return on assets is calculated by dividing net income by assets. Calculation formula:

Return on assets ratio = Net profit / Assets = line 2400 / line 1600

Often, for a more accurate assessment of the coefficient, the value of assets is taken not for a specific period, but the arithmetic average of the beginning and end of the reporting period. For example, the value of assets at the beginning of the year and at the end of the year divided by 2.

Where to get the value of assets? It is taken from the financial statements in the form of "Balance" (line 1600).

In Western literature, the formula for calculating the return on assets (ROA, Return of assets) is as follows:

Where:
NI - Net Income (net profit);
TA - Total Assets (the amount of assets).

An alternative way to calculate the indicator is as follows:

Where:
EBI is the net income received by shareholders.

Video lesson: “Evaluation of the profitability of company assets”

Return on assets ratio. Calculation example

Let's move on to practice. Let's calculate the return on assets for the aviation company OAO Sukhoi Design Bureau (manufacturers of aircraft). To do this, you need to take data on financial statements from the official website of the company.

Calculation of return on assets for OJSC OKB Sukhoi

Profit and loss statement of JSC OKB Sukhoi

Balance sheet of JSC OKB Sukhoi

Return on assets 2009 = 611682/55494122 = 0.01 (1%)

Return on assets 2010 = 989304/77772090 = 0.012 (1.2%)

Return on assets 2011 = 5243144/85785222 = 0.06 (6%)

According to the foreign rating agency Standard & Poor's, the average return on assets in Russia in 2010 was 2%. So 1.2% for Sukhoi in 2010 is not so bad compared to the average profitability of the entire Russian industry.

The return on assets of JSC OKB Sukhoi increased from 1% in 2009 to 6% in 2011. This indicates that the efficiency of the enterprise as a whole has increased. This was due to the fact that net profit in 2011 was significantly higher than in previous years.

Return on assets ratio. Standard value

The standard for the return on assets, as well as for all profitability ratios Kra >0. If the value is less than zero, this is an occasion to seriously think about the efficiency of the enterprise. This will be caused by the fact that the company operates at a loss.

Summary

Analyzed the return on assets. Hope you don't have any more questions. Summing up, I want to note that ROA is one of the three most important profitability ratios of an enterprise, along with the return on sales ratio and the return on equity ratio. You can read more about the return on sales ratio in the article: ““. This ratio reflects the profitability and profitability of the enterprise. It is usually used by investors to evaluate alternative investment projects.

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.