Rytvae Consulting · Think Right · Invest Right
ROA Calculator
Result
Chart
Show formula & working
ROA = PAT (or EBIT) ÷ Average total assets
Details
How this works
ROA shows how much profit the business earns on everything it owns.
EBIT-based ROA removes the effect of how the assets are financed.
Frequently asked questions
Which version should I use?
PAT-based ROA is common; EBIT-based ROA is better for comparing businesses with different debt levels.
Why is ROA low for banks?
Their assets are large relative to profit by nature; compare within an industry.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.