# Return on Assets

*Accounting & Reporting — Finicade finance glossary*

Return on assets measures profit generated per unit of assets, capturing how efficiently a company uses what it owns regardless of how it's financed. It's the middle term in DuPont analysis, and comparing it with return on equity reveals how much of the equity return comes from leverage rather than operations.

**Formula:** `ROA = Net income ÷ Average total assets`

**Also known as:** ROA, return on total assets

**Related terms:** [Return on Equity (ROE)](https://finicade.com/glossary/roe), [Return on Invested Capital](https://finicade.com/glossary/return-on-invested-capital), [DuPont Analysis](https://finicade.com/glossary/dupont-analysis), [Net Income](https://finicade.com/glossary/net-income), [Net Profit Margin](https://finicade.com/glossary/net-profit-margin)

Source: https://finicade.com/glossary/return-on-assets