Return on assets is good. Return on assets ratio: taking into account all factors of growth and decline of the company in modern conditions

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What is the return on assets of an enterprise

Return on assets(Return on Assets, ROA) - a relative indicator of the effectiveness of the enterprise, used in the analysis of financial statements, to assess the profitability and profitability of the organization.
Return on assets is a financial ratio that characterizes the return on the use of all the assets of the organization, the efficiency of using property, which makes it possible to assess the quality of work of financial managers. That is, it shows how much net profit in terms of monetary units brings each unit of assets at the disposal of the company. In other words: how much profit falls on each monetary unit invested in the property of the organization.
The profitability ratio is of interest: for investors, creditors, managers and suppliers. Using the ROA ratio, you can analyze the ability of an organization to generate profit without taking into account the structure of its capital. Return on Assets is associated with such categories as the financial reliability of the enterprise, solvency, creditworthiness, investment attractiveness, competitiveness.

How ROA is calculated

Return on assets is defined as the quotient of the net profit (or loss) received for the period divided by the total assets of the organization for the period.
ROA = (( net profit+ interest payments) * (1 - tax rate)) / company assets *100%.
As can be seen from the formula, the entire profit of the enterprise is displayed before the payment of interest on the loan. And then the amount of deducted interest, taking into account tax, is added to the amount of net profit. Payments for the use of borrowed funds are included in the gross costs, and the income of investors is paid out of profits after deducting all interest payments.
Such features of the calculation are due to the fact that two financial sources are used in the formation of assets - own funds and borrowed funds. Consequently, when forming assets, there is no difference which ruble came as part of borrowed funds, and which one was contributed by the owner of the enterprise. The essence of the profitability indicator is to understand how effectively each unit of funds raised was used. For this reason, it is necessary to exclude from net profit the amount of interest payments paid before income tax.

Most people without economic education efficiency commercial activities are evaluated exclusively by a trade margin, considering, for example, a difference of 50 rubles. between the purchase of goods for 100 rubles / unit. and its implementation at 150 rubles / unit. a net profit of 50%.

This approach does not correctly reflect the return on invested capital.

After all, when purchasing a low-quality batch of products or in the event of a sharp drop in demand, the business will come to a standstill due to insufficiency (lack) of working capital.

How can one qualitatively analyze the financial and economic processes of a medium or large company that attracts investments, uses loans, conducts a large number of current operations, invests in the expansion of production and working capital?

Running a business requires the owner to systematically evaluate results. This allows you to analyze the efforts spent on efficiency, as well as draw conclusions about the prospects for the development of entrepreneurial activity.

One of critical factors economic analysis, reflecting the effectiveness of business processes, is profitability.

It should be noted that this is a relative value, which is calculated by comparing several indicators.

Kinds

Profitability comprehensively reflects how effectively natural resources, labor, material and financial resources. It is expressed in profit:

• per unit of investment;
• each unit of money received.

The ratio of profit to resources, assets or the flows that form it allows you to get percentage quantitative profitability ratios.

There are many types of profitability:

• turnover;
• capital;
• salaries;
• products;
• production;
• investments;
• sales;
• fixed assets;
• assets, etc.

Each type has a number of individual features that are important to consider for the correct calculation of indicators.

What does it depend on

The return on assets indicator allows you to determine the discrepancies between the level of profitability that was predicted and the actual value, as well as identify the factors that caused such deviations.

Often, such a calculation is used to compare the performance of several companies in the same industry.

In general, profitability is influenced by a lot of factors acting directly or indirectly:

• internal (production assets, volume of assets, turnover, labor productivity, technical equipment);
• external(pressure of competitors, inflation rate, market conditions, tax policy of the state).

A detailed analysis of the impact on the company's profitability of all factors without exception will make it possible to increase its level by stimulating the sale of products, improving production, reducing unjustified costs and increasing efficiency.

When studying the return on assets, the scope of the company's activities should be taken into account. This is due to the fact that capital-intensive industries (for example, railway transport or the energy sector) have, as a rule, lower rates.

The service sector, in turn, characterized by a minimum of working capital with little investment, is characterized by increased values ​​of the profitability index.

ROA calculation: why is it needed

Profitability assets ( ROA/ return on assets) is an index that characterizes the profitability of an enterprise in the context of its assets, on the basis of which profit is made. It shows the owners of the company what is the return on their investment.

To understand the economic performance of a business, it is necessary to systematically study the factors that affect the decrease (increase) in profits.

At the same time, the excess of the company's income over expenses does not mean at all that entrepreneurial activity effective. For example, a million rubles can be earned as big factory, consisting of several industrial buildings and having multi-million fixed assets, as well as a small company of 5 people, located in an office of 30 m 2.

If in case 1 it is possible to judge the approach to the loss threshold, then in case 2 it indicates the receipt of excess profit. This example explains why key indicator efficiency is considered not the net profit itself (its absolute value), but the ratio to different types the costs that create it.

Return on assets

Any company aims to make a profit. Not only its size is important, but also what was needed to obtain this amount (the amount of work performed, the resources involved, the costs incurred).

Comparison of advanced investments and costs with profit is carried out by means of profitability ratios. It is they that make it possible to determine what increases profitability in the course of doing business or hinders its achievement.

These characteristics are considered the main tools of economic analysis, allowing an accurate assessment of the company's solvency and investment attractiveness.

In a broad sense, return on assets ( CRA) reflect the amount of profit received by the organization(in numerical terms) for every dollar spent.

That is, the profitability of the enterprise of 42% indicates that the share of net profit in each earned ruble is 42 kopecks.

Indicators will be scrutinized credit organizations and investors.

This way they can understand the potential for return on their investment and the associated risks of losing money.

Business counterparties also rely on these characteristics, determining the level of reliability of a business partnership.

Return on assets formulas:

Economic

The general formula by which the return on assets is calculated is as follows:

Formula: Return on assets = (net profit / average annual value of assets) * 100%

To calculate the values ​​are taken from financial reporting:

• net profit from f. No. 2 “Report on financial results";
• average value of assets from f. No. 1 "Balance" (an accurate calculation can be obtained by adding the amounts of assets at the beginning and end of the reporting period, the resulting number is divided in half).

Familiarize yourself with the meanings of the terms in the basic formulas:

• Revenue represents the amount of money that was received from the sale of products, investments, the sale of goods (services) or securities, lending and other transactions as a result of commercial activities.
• Revenue from sales is the so-called income before tax, that is, the difference between the amount of revenue and the amount of operating costs.
• Production costs represent the sum of the cost of working capital and fixed assets.
• Net profit is actually the difference between the revenue received in the course of operating activities and the total costs of the company for reporting period taking into account the expenses intended for the payment of taxes.

Assets represent the total value owned by the company:

• property (buildings, machines, structures, equipment);
• cash (securities, cash, bank deposits); accounts receivable;
• inventories;
• copyrights and patents;
• fixed assets.

Net assets represent the so-called difference between the value of total assets and liabilities (the amount of debt obligations) of the company. In the calculations, the final value of section 3 f. is used. No. 1 "Balance".

Note that international accounting is oversaturated with methods for calculating profitability. Without really going into the essence of the values, domestic economists have adopted most of the indicators used in Western practice.

This has become a source of problems in calculations due to distortions in the concepts: “income”, “profit”, “expenses”, “revenue”. For example, according to the GAAP system, there are up to 20 types of profit!

Although the name of an indicator used in financial reporting in Russia is identical to the name of an indicator according to international standards, their meaning can be interpreted in different ways. So, depreciation deductions are deducted from gross profit, according to Western standards - no.

Mechanical copying into Russian practice of profitability ratios and terms from international standards is at least incorrect. At the same time, when calculating indicators, pre-market approaches are preserved.

Coefficient

Return on assets ratio. Speaking economic terminology, ROA– a coefficient equal to the balance sheet profit from the sale of products (services) minus the indicator of the cost of capital (average annual) invested as a whole.

Thus, ROA shows the company's average return on total sources of capital. This allows you to judge the ability of management to rationally use the company's assets in order to maximize profits.

Formula: Return on assets = the ratio of net profit and interest payments multiplied by (1 - the current tax rate) to the company's assets multiplied by 100%

As can be seen, when calculating ROA net profit is adjusted by the amount of interest intended for payments on the loan (income tax is also taken into account).

It is worth noting that in the numerator of the coefficient, some financiers use the EBIT indicator (earnings before interest and taxes).

With this approach, companies using borrowed capital are less profitable. At the same time, the efficiency of their commercial activities is often higher than that of companies that are actually financed from their own capital.

counting ROA, it is better to use numbers from annual report. Otherwise (if quarterly indicators are taken as the basis), the coefficient must be multiplied by the number of reporting periods.

By balance

The profitability of total assets according to the balance sheet is calculated as a percentage as the ratio of net profit (net of taxation) to assets (excluding shares repurchased from shareholders and debts of company owners for founder's contributions to the authorized capital).

Formula: Return on assets according to the balance sheet = net profit for the reporting period (loss) * (360 / period) * (1 / balance sheet currency)

For calculations based on the Balance of the average size and large companies in the document itself, you need to calculate the arithmetic mean of the values:

• VnAsr– cost outside current assets(average annual) - p. 190 (“Total” in Section I)
• ObAsr- the cost of current assets (average annual) - p. 290 ("Total" in Section II) For small enterprises, the corresponding indicators are calculated differently:
• VnAsr- the cost of non-current assets is equal to the sum of lines 1150 and lines 1170;
• ObAsr- the cost of current assets is equal to the sum of line 1210, line 1250 and line 1230.

To get the average annual values, you need to add the numbers at the beginning and end of the reporting period. Profitability is calculated according to the main formula. In this case, the values ​​ObAav and VnAav are summed up. If it is required to calculate the profitability of current (non-current) assets separately, the formulas are applied:

• ROAvn = PR / VnAsr;
• ROAob \u003d PR / ObAsr; where PR is profit.

net assets

The company's net assets are the carrying amount less debt liabilities. With the value of the indicator with the “-” sign, we can talk about the insufficiency of property, when the amount of the company's debts is higher than the value of its property as a whole.

If they are less than the value of the authorized capital at the end of the year, the enterprise must reduce its size, equalizing the indicators (however, not lower than the amount established by the Law, otherwise the company may be liquidated for this reason).

Joint stock companies have the right to make decisions regarding the payment of dividends if the amount net assets not less than the size of the authorized capital (as well as reserve capital) in the amount of the difference between the value (nominal and liquidation) of preferred shares.

Net assets are necessarily calculated on the basis of balance sheet data. But at the same time, deferred income, as well as reserves, are not included in liabilities.

Formula: Coefficient net profitability= net profit / proceeds from the sale of products (services)

This indicator shows the profitability of the enterprise at the rate of net profit per 1 monetary unit (currency) of sold products. By the way, it correlates with the accounting profitability ratio of the company.

current assets

Shows what, in percentage terms, is the amount of profit received by the company from one unit of current assets. The indicator is calculated as follows:

Formula: Return on current assets \u003d net profit for the reporting period (loss) * (360 / period) * (1 / current assets)

current assets

Lets hold complex analysis rationality of the use of working capital. The indicator is calculated as follows:

Formula: Return on current assets = net income / value of current assets (average)

Conclusions regarding the results of the calculation of all these coefficients will be more accurate and justified if the following points are taken into account:

1. Incompatibility of calculations. In the formula, the numerator and denominator are presented in "unequal" monetary units. For example, profit shows current results, the amount of assets (capital) is cumulative, accounting for it is kept for several years. When making decisions, it is advisable to take into account indicators market value enterprises.
2. Temporal aspect. Profitability indicators are static, so they should be considered in dynamics. They show how effective the work was in a certain period, but do not take into account the effect of long-term investments. Moreover, when switching to innovative technologies the values ​​of the coefficients, as a rule, decrease.
3. The problem of risk. Often, high performance comes at the price of risky actions. A complete analysis must necessarily include an assessment of the coefficients financial stability, current cost structures, financial and operational leverage.

The most important direction in the analysis of current assets, along with the sources of their financing, is the study of indicators of the productivity of their use.

The key ones are profitability indicators, reflecting the ratio of income and expenses.

In addition to the considered return on assets for a qualitative analysis of commercial activities, it makes sense to take into account other indicators of profitability: contracting services, trade margins, personnel, investments, and others.

The overestimated values ​​obtained during the calculations indicate the super-efficiency of the business, but warn of high risks. For example, a company receiving a loan will affect the return on assets in the direction of increase.

However, when irrational use cash, it will quickly go into the red. The normal value is considered to be profitability in the range of 30-40%. However, indicators indicating stable development are different for each type of business.

In addition, seasonality matters. Therefore, it is appropriate to evaluate the results of doing business in different time intervals (short- and long-term periods).

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Return on assets (ROA)- an indicator of the effectiveness of the application and distribution of current and non-current assets of the enterprise. This ratio allows you to assess the company's ability to make a profit without taking into account financial leverage (the ratio of loan and equity capital). The return on assets gives an idea of ​​the rationality of using all the assets of the enterprise (in contrast to the return on equity, which characterizes only own funds), and its calculation is more relevant for managers than for investors. The ROA index allows you to analyze the financial reliability, creditworthiness, investment attractiveness of an organization by calculating the amount of profit for each invested monetary unit.

Return on assets (formula)

Return on assets is the product net income and the total value of assets:

The net profit indicator is located in the income statement, the value of assets is in. To reduce the calculation error, the average annual value of assets is substituted into the formula for return on assets: (cost at the beginning + cost at the end of the reporting period) / 2.

Return on assets is also defined as the product of net profit and interest payments per unit, minus the tax rate:

The formula clearly shows that in addition to net profit, the calculation takes into account interest for the use of borrowed funds. This suggests that both equity and loan capital are used in the formation of long-term assets, and both are taken into account when calculating ROA.

Normative value of the ROA indicator

The profitability ratio directly depends on the scope of the organization. Thus, in heavy industry, the indicator will be lower than in the service sector, since the enterprises of the latter need less investment in working capital. In general, return on assets reflects the effectiveness and profitability of asset management, and therefore, the higher it is, the better. If the coefficient began to decline, then one of the assets (non-current or current) does not make a sufficient contribution to the organization's income. A high return on assets indicates that a company is generating more revenue with less

ROTA - coefficient equal to the ratio of net profit to the amount of assets. The calculation data contains Balance sheet And Statement of financial results(formerly Profit and Loss Statement). This is a generalized indicator of profitability, reflecting the amount of profit per unit cost of capital (all financial resources of the organization, regardless of funding sources).

Return on total assets - what shows

Return on total assets(ROTA) characterizes the degree of efficiency in the use of the organization's property, the professional qualifications of the enterprise's management.

Return on total assets - formula

The general formula for calculating the coefficient:

Calculation formula according to the balance sheet data:

where line 2300 - line of the Statement of Financial Results (form No. 2), line 1600 - line of the Balance Sheet (form No. 1) at the beginning and end of the year.

Return on total assets - value

Growth of the indicator Return on total assets related:

• with an increase in the net profit of the organization,
• with an increase in tariffs for goods and services or a decrease in the cost of producing goods and providing services,
• with an increase in asset turnover.

The decrease is due to:

• with a decrease in net organization's profits,
• with an increase in the value of fixed assets, current and non-current assets,
• with a decrease in asset turnover.

Synonyms

• economic profitability
• economic return on assets

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The financial and economic activity of any organization takes into account 2 main categories of indicators - absolute and relative. The first category includes profit, sales volume, total revenue. Despite the indisputable importance of these values, their analysis is not able to fully characterize economic activity enterprises. A more informative picture can be given by relative indicators. These are profitability, liquidity and financial stability ratios. Another important property relative indicators- they allow you to compare the characteristics of several organizations. Using the return on assets formula, you can evaluate many important economic indicators enterprises.

What can show the return on assets of an enterprise

Return on assets (ROA) is a parameter that takes into account the efficiency of the company's assets. The ratio describes the organization's ability to make a profit, without taking into account the structure of its capital.

It should be clearly understood here that the predominance of a company's income over its expenses does not always mean that its entrepreneurial activity is developing brilliantly. So, a profit of one million rubles can be received both by a large production complex with several workshops, and small firm with a staff of 5 people. Agree, these are two completely different millions.

In the first case, it makes sense for management to think about a dangerous approach to the line of unprofitability, while in the second case, there is an obvious receipt of superprofits. This simple example clearly shows that much more important than the absolute indicators of profit, the success of an organization can demonstrate the ratio of this profit to the various items of costs that create it.

Profitability is usually divided into three categories:

• ROAvn - profitability of non-current assets.
• ROAob - return on current assets.
• ROA - return on assets.

Fixed assets

Here, under non-current assets (CNA) it is customary to understand the property of the organization reflected in the balance sheet - in its first section for medium-sized businesses, and in lines numbered 1150 and 1170 for small businesses. Non-current funds are operated for more than 12 months without losing their specifications and partially give their value on account of the cost of the enterprise's products or the services provided to them (works performed).

What can be classified as non-current assets of the company:

• Fixed assets (inventory, real estate, production capacity, vehicles, communication lines, power transmission lines, etc.).
• Various forms of intangible assets (patents, copyrights, business reputation firms, any intellectual property, etc.).
• Long-term financial obligations (loans for more than 12 months, investments in other industries, etc.).
• Other funds.

current assets

The current assets of the organization (ObA) take into account its property, registered in the balance sheet (lines 1210, 1230 and 1250 of its first section). Such funds are used within one production cycle (if it takes more than 12 months) or for a period of less than 1 year.

Current assets include:

Thus, all revolving funds can be clearly divided into 3 main categories:

• Material: stocks of the enterprise.
• Intangible: cash, their various equivalents, accounts receivable.
• Financial: VAT on acquired valuables, short-term investments (excluding equivalents).

The profitability of the total assets of the company can be defined as the sum of current and non-current funds.

Formula for calculation

In the general case, the calculation of return on assets (ROA) is made using one of these formulas:

ROA=(PR/Asr)*100%

ROA=(PE/Asr)*100%,

where PR is the profit received from sales, NP is the net profit of the enterprise, Asr is the value of assets on an average annual basis.

It can be seen from the formula that the calculated parameter is relative and is always expressed as a percentage. The coefficient clearly demonstrates how many kopecks of net profit (profit from sales) will fall on each ruble invested in the organization's funds.

For those who want to visually see the work of these formulas, we suggest watching the video:

The value of profit from sales can be found in two ways: take it from the official report on financial profit and losses, or calculate it yourself using the following formula:

PR=TR-TC,

where TR (abbreviation for totalrevenue) is the organization's revenue in value terms, TC (totalcost) is the total cost.

The TR value, in turn, is calculated by the formula:

where P (price) is the price, and Q (quantity) is the sales volume.

The value of the vehicle represents the total costs of the company, including components, materials, depreciation, deductions for wages, communication costs, security, public utilities, other costs.

The value of NP (net profit) can also be obtained from the income statement. Also, this value can be calculated using the formula:

PE=TR-TC-PrR+PrD-N,

where PrR and PrD are the values ​​of other expenses and incomes, respectively (this includes any costs or receipts that are not related to the main type of activity of the organization), H is the indicator of accrued taxes.

The value of assets can be found in the organization's balance sheet.

Calculation based on the company's balance sheet

For the most part, profitability indicators are of interest to analysts and financiers, who, on their basis, evaluate business performance and are looking for reserves for development. However, these values ​​can be no less interesting and important for tax specialists or company accountants. The fact is that these coefficients can become a legal basis for getting into the plan of inspections by the tax department. To do this, it will be quite enough to have a deviation from the industry average of 10 percent or more.

The balance sheet is considered the main financial document any enterprise. It clearly shows the values ​​of all income and expense items as of the beginning and end of the required period. To use the formula for determining the return on assets on the balance sheet, it is enough to calculate the arithmetic mean for each article or section.

For medium-sized businesses, the average figures are calculated first of all from the values ​​​​from line 190 (total value for section I), and then from the values ​​\u200b\u200bfrom line 290 (total value for section II). As a result, the values ​​of VnAsr (average annual value of non-current assets) and ObAsr (average annual value of current assets) are calculated.

The calculation is done in a slightly different way. To calculate VnAsr, the arithmetic average is calculated for lines 1150 and 1170 (tangible non-current and intangible non-current funds, respectively). ObAsr is defined as the arithmetic mean of rows 1210, 1250, and 1230.

VnAsr=VnAnp+VnAkp,

where VnAnp and VnAkp are the value of non-current funds at the beginning and end of the billing period.

The same way,

ObAsr=ObAnp+ObAcp,

where ObAnp and ObAkp - the cost of working capital as of the beginning and end of the required period.

The sum of these two values ​​gives the value average annual cost assets:

Asr=VnAsr+ObAsr.

Standard values

Depending on the characteristics of the organization standard values return on assets can vary significantly:

It's clear that commercial enterprise will show the highest values ​​of return on assets. This is due to the relatively low cost of non-current funds for an organization of this kind.

A manufacturing organization, due to the presence of a large amount of equipment, will have more non-current assets and, as a result, average profitability.

For financial institutions the profitability ratio is relatively low due to the high competition in this niche of economic activity.

When analyzing all these coefficients, it is worth remembering that they show a static picture and should be considered in dynamics. They do not take into account the impact of long-term investments, but they give a comprehensive picture of how successful production activities have been over a certain period of time.

For the most qualitative analysis of the commercial activities of an organization, in addition to the coefficients considered, it is necessary to take into account other indicators: return on capital, sales, products, investments, personnel, etc.

High values ​​of the coefficient can often indicate not only excellent business performance, but also serve as a signal of increased risks. So, for example, a loan taken by an organization will certainly affect its profitability indicators upwards, but inefficient spending of these funds can rapidly reduce this indicator. A full-fledged analysis should take into account this factor and necessarily contain an assessment of financial stability and the structure of current costs.

Summing up, we can once again emphasize that ROA is an extremely important and convenient indicator for analyzing the financial and economic activities of an organization and comparing its performance with the achievements of competitors. The return on assets is calculated according to the formula, and allows you to qualitatively evaluate the effectiveness of the use of working and non-current assets.

If you still have any questions about calculating the return on assets of an enterprise, we suggest that you familiarize yourself with this video: