Return on total assets. Return on assets. Standard value of the indicator

The return on assets formula shows the approximate value of the performance indicator of the entire organization (company) as a whole. A high rate of return indicates financial well-being company and its competitiveness.

The formula for calculating profitability for each category of assets is different. The amounts for calculation are taken from the relevant section and line of the balance sheet.

An increasing level of significance indicates a positive trend in the development and all activities of the organization. A decrease in the value may indicate a decrease in the turnover of the company and.

Return on assets

ROA or return on assets shows the relative level economic efficiency companies. The coefficient reflects the ratio of profit to the funds that formed it. The data for the calculation is taken from the balance sheet going to.

The value is relative and is usually expressed as a percentage.

ROA reflects the level of efficiency in the use of the property of the company (enterprise), the degree of qualified management.

It is applied for:

1. reporting cash investments;
2. characteristics of the degree of income from existing cash investments and the effectiveness of the use of property;
3. displaying the functionality of the work of accountants;
4. establishing the exact level of profitability in each group of assets separately available in the organization.

Through calculation, it is realistic to analyze the degree of profitability of the company, regardless of its turnover.

The coefficient reflects the financial position of the company, its solvency to pay loans, competitiveness, its investment attractiveness (quantity).

Profitability indicators are:

1. Total
2. negotiable
3. Non-current

Increase and decrease value

An increase in the value of profitability is most often associated with an increase in the level of net income of the enterprise, with an increase in the cost of goods (services), as well as with a reduction in costs for manufactured products or services provided, with increased turnover.

A decrease in the value is an indicator of a decrease in the net profit received, with an increase in the cost of current, non-current amounts, reduced turnover.

Formulas for Calculus

The general calculation formula in the coefficient is calculated by dividing the income of the enterprise for the calculated period of time by the total cost indicators.

The percentage of contributions and the tax rate are added to the indicator of net financial income.

The resulting amount should be divided by assets and multiply by 100%. To this amount of calculated income are added the interest that was taken away, including. Loan repayments should be treated as gross disbursements.

Important: economic rent. Act. calculated by the formula without % payments, to reveal the net profit of the company.

This calculation is made because the financial investment in the company is made in two ways: at the expense of the company's money supply and money received through a loan. And in the formation of capital, the type of receipt of financial components does not matter.

Balance calculation

For non-current property

The company uses non-current assets for more than 1 year. This property (fixed assets, long-term financial investments, intangible assets, etc.) is reflected in the first section of the accounting. balance.

For calculation, the denominator indicates the total in the first section - line 1100 - this is an indicator of profitability.

To analyze the profitability of indicators of other types, the denominator indicates the amount that is displayed in the balance sheet in the corresponding line.

Advice! The easiest way to calculate the average profitability is to add the sums of the indicators for the beginning and end of the year and divide by 2.

For calculation, the numerator indicates the amounts from the financial statements (form No. 2):

• line 2200 - profit from sales;
• line 2400 - net profit.

For current property

The concept of calculating this type of profitability is identical to the previous one. The numerator in the formula will display the amount of income from the financial statement, the denominator will be the value of the average cost working capital. For calculation, the amount of the balance total from the 2nd section of line 1200 is set.

Calculus separate species will be made on the basis of the amount from the corresponding line of section 2.

ROA

ROA involves the calculation of all the funds of the organization, and not just independent funds. The components of the funds of the entire enterprise will not only be available financial flows but also debt obligations and equity.

The higher the indicator, the more enterprise receives financial profit, with a relatively small degree of capital investment.

The main task of the company's management is a constructive investment of financial resources of the organization. The ROA calculation allows you to determine whether the company can be a cost-effective lever for profit, with a relatively small investment.

RONA coefficient

RONA is a measure of the return on net assets. By calculation, it is possible to establish the correctness of the use of the invested capital and the receipt big income from the funds invested by its owners.

Net assets are the total cost unit (property value), not including any debt repayments. Or, in other words, it is the profitability ratio of current and non-current financial assets.

All owners of the company are interested in increasing this value. Net profit directly indicates the feasibility of investing capital in this organization, and also shows the value of dividend payments and is reflected in the total cost.

The RONA calculation is similar to the ROA calculation. There is a slight difference - the capital costs of the institution should not be taken into account. This ratio is an indicator of the degree of performance in the financial market.

RONA shows the managers of the financial group that there is an investment in the acquisition and maintenance of property. The basis for the calculation is the annual profit, after payment of all taxes.

Why should an accountant calculate ROA

It is believed that it is most often necessary to calculate the ROA coefficient for a material group of organization analysts who evaluate the work done to maintain the effectiveness of business development (search for growth reserves).

But for the accountant and tax specialists of the enterprise, this value also plays an important role. Because the assessment of the company's profitability and the calculation of the ROA indicator can be one of the reasons for inspections by tax inspectors.

Really large deviations in profitability, in the amount of more than 10% of the industry average, is a reason to fall under the control of the tax authorities.

Return on assets ratio ROA (Return on Assets) reflects the ratio of a company's net profit to its assets and is expressed as a percentage.

ROA allows investors to evaluate how efficiently a company is using its assets.

It's obvious that the higher this indicator , all the better return on assets of the company.

Formula for calculating ROA (Return on Assets)

ROA is calculated using the following formula:

$$ ROA = ( Net Income \over Assets ) * 100 \% $$

ROA formula for reporting on English language:

$$ROA = ( Net Income \over Total Assets ) * 100 \% $$

where Net profit- the total net profit of the company for the year (for quarterly reports it must be recalculated for the year).

How to use the ROA (Return on Assets) ratio

Return on assets is useful in the following cases:

• When comparing companies in the same industry in terms of ROA
• When analyzing the dynamics of changes in the ROA indicator within one company

It makes no sense to compare companies from different industries in terms of ROA, since the specifics of a business and its profitability, depending on the industry, can vary greatly.

Features of the return on assets indicator ROA (Return on Assets)

Unlike the rate of return equity The calculation of ROA (Return on Assets) involves all the company's assets, which include not only equity, but also borrowed funds.

This implies the relationship between indicators and ROA:

The more leveraged a company is, the greater the difference between performance and ROA.

With an increase in borrowed funds, the ROA will decrease.

ROA (Return on Assets) on FinanceMarker

AT new version FinanceMarker.ru ROA indicator will be available for all companies of the Moscow Exchange, as well as NASDAQ, NYSE and others.

The indicator will be available for:

• Comparison of companies with each other in terms of ROA within the framework of the summary table of multipliers.
• Analysis of changes in the ROA indicator within one company.

ROA data will be available at
FinanceMarker.ru in both tabular and graphical form.

The return on assets ratio shows how well the company's property is used and how effectively the management manages it. Information for the calculation is taken from the financial statements of the enterprise - f. No. 1 and No. 2. In order to determine ROA, it is enough to divide net profit (item 2400, Statement of Financial Results) by the average value of the company's assets (item 1600, Balance Sheet). The standard of the indicator is RA>0, because otherwise the enterprise suffers losses.

When evaluating the effectiveness of an enterprise, it is worth paying attention to how effectively the property owned by the company is used - its fixed assets, inventory, money in the account. For this purpose, an indicator cleared of the influence of borrowed funds is used.

Return on assets(Return on Assets - ROA, RA) is financial ratio, which allows you to determine the amount of net profit of the company for each unit of property owned by it. It is calculated as the ratio of the net financial result to the value of the company's assets.

Reference! Unlike the sales profitability ratio, RA is calculated by dividing the profit by the average value of the company's assets: taking into account the price of the property at the beginning and end of the year.

ROA can be viewed as a continuation of the return on equity: if in it the owners determine how much profit each unit of their invested funds brought, then the return on assets shows how much they earned on each unit of property acquired through their investments.

Reference! Since the RA indicator characterizes the efficiency of using the enterprise's property, it also characterizes the quality of management at the enterprise. It is often referred to as the "rate of return".

ROA shows the return in the form of net income from the company's property (cash, inventories, fixed assets, receivables, intangible assets, etc.) and determines the company's ability to generate profit, regardless of the amount of borrowed funds in the capital structure.

Formula for calculating the indicator

Information to determine the profitability of property must be taken from the financial statements of the enterprise: the balance sheet (Form No. 1) and the income statement (Form No. 2). These reports contain the values:

• net profit (Article 2400 F. No. 2);
• negotiable (Article 1200 F. No. 1) and beyond current assets(Article 1100 F. No. 1).

Important point! To obtain the exact value of the coefficient, the values ​​of current and non-current assets are considered at the beginning and at the end of the year.

RA \u003d PE / ((OAng + OAkg) / 2) + ((VAng + VAkg) / 2), where

• PE is the net profit or loss of the company.
• AO ng, kg - current assets at the beginning and end of the year.
• VA ng, kg - non-current assets at the beginning and end of the year.

The formula for calculating the ROA coefficient presented above can be presented taking into account the relevant items of financial statements:

RA = Art. 2400 / ((st. 1100 ng + st. 1100 kg) / 2 + (st. 1200 ng + st. 1200 kg) / 2)

RA = Art. 2400 / (st. 1600 ng + st. 1600 kg) / 2

The calculation procedure and a simplified example of determining the ROA value is presented in the video

The normal value of the effectiveness of the use of company assets

The requirements for the normal value of RA are similar to the requirements for other indicators from the Profitability group: it must be greater than zero. If the resulting value is negative, then the company is operating at a loss.

Reference! ROA is a relative indicator: it should not be considered as a single value - the analysis is carried out by comparison over the years, with a base value or with similar coefficients of competing firms.

For trading companies and service enterprises, the coefficient will always be high due to the small property base; on the contrary, for capital-intensive industries (metallurgy, electric power industry, mechanical engineering, etc.) it will be lower.

Reference! The return on assets, like other coefficients similar to it, is measured as a percentage.

Examples of calculating the profitability ratio

Practical examples will help you understand the sequence of steps and the algorithm for calculating the return on assets. Two Russian companies- the capital-intensive Russian corporation PJSC Avtovaz and trade company"M Video".

Conclusion! The return on assets ratio for Avtovaz PJSC decreased in 2016 due to a decrease in net profit. In 2017, the indicator increased, but did not return to its original level. This state of affairs requires a revision of the corporate profit formation policy.

Conclusion! Property profitability index for PJSC M.Video in 2015-2016 remains at a stable level. In 2017, there is growth due to an increase in net profit by 21.5%. The corporation has a favorable financial position, a competent asset and profit management policy.

If we consider both enterprises, then the capital-intensive Avtovaz PJSC shows a lower value of Return on Assets. Its fixed assets are of high value, which is why each unit of them accounts for a smaller amount of profit. As for the M.Video trading corporation, its property is represented mainly by inventories, which allows it to achieve a higher return on assets.

It is most convenient to calculate the RA indicator in the spreadsheet editor Excel. The attached document details the above calculations.

Every entrepreneur wants to know how productively the money invested by him is working. Return on assets shows the effectiveness of investments.

Profitability serves to control and analyze financial activities companies. This is an indicator of efficiency, expressed in terms of money or percentage. The profitability ratio is calculated separately for different cases, for example, when choosing a project and wanting to invest in a business, the return on investment is used (in international practice, the term ROI or ROR is used), it is obtained by dividing the profit by the investment amount. Or the profitability ratio can be used to calculate operating income, calculated by dividing sales profit by costs and multiplying by 100% and so on. There is no general calculation formula, since the profitability for each case is determined in its own way, various accounting indicators are used in the calculation.

Let's take a closer look at what is return on assets. Information about the assets of the company is contained in the balance sheet and represents the amount of property that the company has. When there is a need to calculate the value of property that will remain with the owners after they pay off their obligations, then the net assets or equity of the company are calculated. When calculating this indicator, we take assets on the balance sheet (this does not take into account the debt of the founders on contributions to the authorized capital and own shares that are bought back from the founders) and subtract liabilities on the balance sheet (excluding deferred income).

Return on net assets

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

To understand whether we are using the invested capital correctly, how efficiently the funds are working, we use the return on net assets (RONA) indicator. All owners want the value of net assets to be higher, as this indicates right choice investment object. Here the indicator "net assets" is taken, which shows all the property of the company without its obligations. RONA is derived from the ratio of net profit after tax to 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 the performance of a business is the return on assets (ROA). It is calculated not only to assess the state of affairs in the company, large downward deviations of this indicator (more than 10% in the industry) can serve as a reason for an audit by the tax authorities.

In order to understand what kind of profitability a company has in an industry, you need to calculate your own and compare. Information for calculating the indicator is taken from the balance sheet and the income statement.

Return on assets ratio

Balance formula:

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

Example

LLC "Olga" 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.

Profitability current assets Olga LLC is - 12.35% (210,000 rubles / 1,700,000 rubles x 100).

For example, in 2015 the tax authorities set an industry average of 3.9% for return on assets. First of all, we determine the maximum level of return on assets for activities in the field of publishing, taking into account the allowable deviation.

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

Return on total assets

Return on total assets or profitability total assets(ROTA, Return on Total Assets) is an indicator that reveals the efficiency of using the company's long-term assets in order to make a profit. This indicator is able to reflect the return on 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 ratio of the company's operating income (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 company property (including: any equipment, vehicles, buildings, stocks, deposits, deposits, securities, intangible assets and other property), as well as cash on accounts and on hand.

Unlike ROA, ROTA is based on operating income, not net income. According to this indicator, you can see the assets of the enterprise before payment of obligations. ROTA shows how good a company is in operational terms.

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

After that, we divide the profit by the balance sheet currency by assets 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 performance, if the company offers a wide range of products, for example. With this approach, it is possible to assess whether certain products bring the desired income. It can push managers to change production policies to reduce costs, increase sales revenue, and reduce debt.

Of course, this method It 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. Profits may simply be drawn, since ROTA does not indicate whether a company is liquid.

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