This measures the efficiency of assets used to generate income by measuring the amount of profit generated for every dollar invested in assets. The ROI ratio indicates how well a management team is utilizing business assets.
How to calculate the return on investment:
Formula
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Return on total assets: 0.00
A higher ratio result than industry standards usually indicates an efficient use of assets. There are several factors to consider before drawing conclusions from this ratio such as seasonal variability in sales and whether assets are bought or leased.