Return on Assets (ROA) = Net Income ÷ Average Total Assets
Use net income from the income statement
Use average total assets = (Beginning Total Assets + Ending Total Assets) ÷ 2
Divide net income by average total assets
Multiply the result by 100 to get a percentage
ROA = (Net Income ÷ Average Total Assets) × 100
Example: if net income is 50,000 and average total assets are 500,000, ROA = 10%