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How to Calculate ROAA Before calculating ROAA, you must gather accurate financial data. Start by obtaining the company’s net income, which is typically found on the income statement.
Return on assets To calculate a bank's return on assets, you need to know two pieces of information. First, you need to find the net income, which can be found on the bank's income statement.
Return on assets (ROA) is a measure of how efficiently a company uses the assets it owns to generate profits. Managers, analysts and investors use ROA to evaluate a company’s financial health.
ROA = (Net Profit / Total Assets) x 100 You can find a public company’s net profit reported on its income statement while total assets are reported on its monthly, quarterly, or annual balance ...