Reading Financial Data - Step by Step / Cash flow & returns
What is ROA?
ROA compares net income with total assets.
Concept
ROA = net income / assets. It uses a bigger denominator than ROE for many companies.
Worked Example: Compute Apple return on assets
- AAPL net income was $112.0 billion in fiscal 2025.
- AAPL assets were $359.2 billion.
- ROA = net income / assets = $112.0 billion / $359.2 billion = 31.18%.
- For comparison, JPM assets were $4,424.9 billion and its ROA was 1.29%.
- Banks carry large loan and securities balances, so ROA often reads differently from non-financial companies.
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Sources
Informational only - not investment advice.