How to calculate ROA?
In this Excel tutorial lesson, you will learn how to calculate ROA in Excel.
What is ROA?
ROA stands for return on assets. Return of assets is one of the most basic measures in business. ROA is an indicator which is used to measure the efficiency of a company.
Let’s build the return on assets calculator in Excel. To calculate ROA in Excel, first you need some data. You need net profit and total assets.
To compute the ROA in your Excel worksheet, enter the formula =B2/B3 into cell B4.
ROA calculator
This formula divides the net profit, which you’ll input in cell B2, by the total assets from cell B3, aligning with the ROA formula:
ROA = Net Profit / Total Assets
Remember to format ROA as Percentage. Click B4 cell > click CTRL + 1 keyboard shortcut > click Percentage with 2 decimal places.
Note: The net income and total assets figures should be for the same time period, such as a quarter or a year, to ensure an accurate comparison.
Downloand a free sample spreadsheet here.
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makes me happy how easy you made it