What is the difference between return on total assets and return on assets

Updated on Financial 2024-05-06
5 answers
  1. Anonymous users2024-02-09

    1. Return on net assets refers to the ratio of net profit to net assets of an enterprise in the current period, which is the core indicator reflecting the profitability of an enterprise. The higher the indicator, the more net profit, the better the profitability of the enterprise.

    The return on total assets refers to the rate of return on all assets used by the enterprise, which reflects the total results of the use of all assets of the enterprise. The return on total assets reflects the efficiency of the company's assets and is a highly comprehensive indicator. The higher the indicator, the higher the utilization efficiency of the enterprise's assets, and the stronger the profitability of the enterprise's assets, the higher the indicator, the better.

    2. Return on total assets = EBIT 100% of average total assets

    Return on equity = net profit Average gross net assets 100%.

    Average total assets refers to the average of the beginning and end of the period of total assets of the calculation object in a certain period.

    Calculation formula: average total assets = (total assets at the beginning of the calculation period + total assets at the later stage) 2

    EBIT is the profit without deducting interest or income tax, EBIT = net profit of the enterprise + interest expense paid by the enterprise + income tax paid by the enterprise.

    Extended Information: The debt-to-asset ratio is reflected in the total assets of the enterprise and is the ratio of total liabilities at the end of the period divided by the total assets. The debt-to-asset ratio reflects the extent to which the total assets are financed through borrowing, and can also measure the extent to which a company protects the interests of creditors in liquidation.

    The debt-to-asset ratio is an indicator that reflects the ratio of capital provided by creditors to total capital, also known as the debt-to-operating ratio. Debt-to-asset ratio = total liabilities Total assets.

    Encyclopedia - Return on Assets.

  2. Anonymous users2024-02-08

    Just remember it.

    The rate of return is not equal to the rate of return, the rate of return is lower than the rate of return, the rate of return is tax, and the rate of return is not tax.

  3. Anonymous users2024-02-07

    Return on total assets.

    and the calculation of return on total assets is as follows:

    Return on Total Assets = (Total Profit.

    Interest expense) Average total assets x 100% total profit refers to the total profit realized by the enterprise, including the operating profit of the enterprise for the current year.

    Investment income, subsidy income, non-operating expenses.

    If it is a loss, it is indicated by a "-" sign.

    Interest expense refers to the actual loan interest and debt interest incurred by the enterprise in the process of production and operation.

    The sum of total profit and interest expense is EBIT.

    It refers to the total amount of all profits and interest expenses realized by the enterprise in the current year. The data are taken from the company's "Profit and Profit Distribution Statement" and "Basic Information Table".

    The average total assets refer to the average of the beginning and end of the year of the total assets of the enterprise, and the data is taken from the "Balance Sheet" of the enterprise.

    In general, companies can compare this indicator with the market capital rate, and if the indicator is greater than the market rate, it indicates that the company can make full use of financial leverage.

    Operate with debt and get as much profit as possible.

  4. Anonymous users2024-02-06

    Return on total assets.

    Return on total assets analyzes the profitability of a company based on the return on investment, and is the ratio between the return on investment and the total amount of investment. It is calculated as follows:

    Return on total assets = (total profit + interest expense) average total assets x 100% average total assets = (total assets at the beginning of the year + total assets at the end of the year) 2. Net interest rate on total assets.

    Net profit margin on total assets refers to the percentage of a company's net profit to its average total assets. This indicator reflects the level of profit obtained by the company from the use of all assets, that is, how much profit the company can obtain on average for every 1 yuan of assets occupied. It is calculated as follows:

    Net profit margin on total assets = net profit 100% of average total assets

  5. Anonymous users2024-02-05

    Summary. Return on total assets is the same as return on assets. Similarly, the return on assets generally refers to the return on total assets, which is an important indicator to evaluate the efficiency of enterprise asset management.

    In general, it also refers to the overall profitability of all assets of a business, including net assets and liabilities. Return on total assets refers to the rate of return on all assets of a company, and return on assets also refers to the ratio of the total remuneration received by the enterprise to the average total assets in a certain period. The higher the return on total assets, the more efficient the asset utilization.

    The lower the return on total assets, the less efficient the asset utilization. It's the same meaning, it's the same.

    Return on total assets and return on assets are the same. Similarly, the return on assets generally refers to the return on total assets, which is an important indicator to evaluate the efficiency of enterprise asset management. Generally speaking, it also refers to the overall profitability of all assets of the enterprise, including net assets and liabilities.

    Return on total assets refers to the rate of return on the company's state-owned assets, and the rate of return on assets also refers to the ratio of the total remuneration obtained by the enterprise to the average total assets in a certain period. The higher the return on total assets, the more efficient the asset utilization. The lower the return on total assets, the less efficient the asset utilization.

    It's the same meaning, it's the same.

    The rate of return on total assets refers to the rate of return on the use of all assets of the enterprise, which reflects the total results of the use of all assets of the enterprise. The return on total assets reflects the utilization efficiency of the company's assets and is a very comprehensive indicator. The higher the indicator, the more efficiently the company's assets are utilized.

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