Economic return on assets ratio. What formula is used to calculate the return on assets of an enterprise? What is return on assets of an enterprise and what does it show?

Profitability includes a whole system of indicators characterizing the efficiency of the organization.

One of these indicators is the coefficient return on assets, it is designated as ROA (English returnonassets). The return on assets indicator can be attributed to the “Profitability” coefficient system, which shows the efficiency of management in the field Money companies.

The return on assets (ROA) ratio reflects the amount of cash that is available per unit of assets available to the organization. An organization's assets include all of its property and cash.

The formula for return on assets on the balance sheet shows how great the return on funds invested in the property of the enterprise is, what profit each ruble invested in its assets can bring to the enterprise.

Formula for return on assets on balance sheet

Formula for calculating return on assets in general view as follows:

R = P / A × 100%,

Here R is return on assets;

P – profit of the enterprise, depending on what kind of profitability is required - net profit or profit from sales (taken from line 2400 of the balance sheet);

A – assets of the enterprise (average value for the corresponding period).

Return on assets is a relative indicator and is calculated as a percentage.

The value of return on assets on the balance sheet

The balance sheet return on assets formula is used in practice by financial analysts to diagnose the company's performance.

The return on assets indicator reflects the financial return on the use of the organization's assets.

The main purpose of using the return on assets indicator is to increase its value when taking into account the company's liquidity. Using this indicator, any financial analyst can quickly analyze the composition of the company's assets and assess their contribution to total income. In the case when any asset does not contribute to the company’s income, it is profitable to abandon it (by selling it or removing it from the company’s balance sheet).

Types of return on assets

The formula for return on assets on the balance sheet can be calculated for three types of assets. Profitability is highlighted:

• For non-current assets;
• For current assets;
• By total assets.

Features of the formula

Non-current assets are long-term assets used by the enterprise for a long time (from 12 months). This type of property is usually reflected in Section I of the balance sheet, including:

• fixed assets,
• intangible assets,
• long-term financial investments etc.

The formula for the profitability of non-current assets in the denominator contains the total for section I (line 1100), which results in the profitability of all non-current assets in stock.

If necessary, an analysis is carried out of the profitability of each type of asset, for example, fixed assets or a group of non-current assets (tangible, intangible, financial). In this case, the formula for return on assets on the balance sheet will contain data on lines reflecting the corresponding property.

The most simple method calculating the average value of assets - adding the indicators at the beginning and end of the year and dividing the resulting amount by 2.

Profit indicator for the numerator The formula for return on assets on the balance sheet is taken from the report on financial results(forms No. 2):

• profit from sales is reflected on line 2200;
• net profit - from line 2400.

Examples of problem solving

Net profit (line 2400)

2014 – 600 thousand rubles.

2015 – 980 thousand rubles.

2016 – 5200 thousand rubles.

Cost of non-current assets (line 1100)

2014 – 55,500 thousand rubles.

2015 – 77,600 thousand rubles.

2016 – 85800 thousand rubles.

Determine the profitability of non-current assets on the balance sheet.

R = P / A × 100%,

Let's calculate the indicator for each year:

Conclusion. We see that the return on assets on the balance sheet increased from 1.08% in 2014 to 6% in 2016. This indicates an increase in the efficiency of the enterprise.

Net profit on line 2400 BB - 51 thousand rubles,

Financial ratios

Financial ratios- these are relative indicators financial activities enterprises that express the relationship between two or more parameters.

To evaluate the current financial condition enterprises apply a set of coefficients that are compared with standards or with the average performance of other enterprises in the industry. Ratios that go beyond standard values ​​signal the company’s “weaknesses.”

All financial ratios are analyzed in the program FinEcAnalysis.

To analyze the financial condition of a company, financial ratios are grouped into the following categories:

Profitability ratios

Liquidity (solvency) ratios

Turnover ratios

Market stability coefficients

Financial stability ratios

Factors of condition of fixed assets and their reproduction

Formulas for financial ratios are calculated based on financial reporting data:

Formula for calculating return on assets on balance sheet

As is known, the goal entrepreneurial activity organization is to make a profit. However, it is pointless to evaluate the efficiency of doing business based only on this indicator - it does not take into account the ratio of invested costs and income received. Therefore, to evaluate the performance of an enterprise, relative indicators are used, on the basis of which conclusions can be drawn about the efficiency of production.

Gross Margin Ratio

The indicator determines how many rubles of gross output are created per 1 ruble of sold and products sold. The gross profitability ratio is calculated using the formula:

Gross Margin Ratio = Gross Profit / Revenue from Sales of Products
Gross profitability ratio = line 029 Form No. 2 / line 10 Form No. 2

Cost return ratio shows the ratio of profit before tax to the amount of costs for production and sales of products. The calculation formula is as follows:

Return on Cost Ratio = Profit before Tax / Total Cost of Goods Sold
Cost profitability ratio = p. 140 Form No. 2 / (p. 20 Form No. 2 + p. 30 Form No. 2 + p. 40 Form No. 2)

In the system of enterprise performance indicators, the most important place belongs to profitability.

Profitability represents a use of funds in which the organization not only covers its costs with income, but also makes a profit.

Profitability, i.e. enterprise profitability, can be assessed using both absolute and relative indicators. Absolute indicators express profit and are measured in in value terms, i.e. in rubles. Relative indicators characterize profitability and are measured as percentages or as coefficients. Profitability indicators are much less influenced than by profit levels, since they are expressed by different ratios of profit and advanced funds(capital), or profits and expenses incurred(costs).

When analyzing, the calculated profitability indicators should be compared with the planned ones, with the corresponding indicators of previous periods, as well as with data from other organizations.

Return on assets

The most important indicator here is return on assets (otherwise known as return on property). This indicator can be determined using the following formula:

Return on assets is the profit remaining at the disposal of the enterprise divided by average value assets; multiply the result by 100%.

Return on assets = (net profit / average annual assets) * 100%

This indicator characterizes the profit received by the enterprise from each ruble, advanced for the formation of assets. Return on assets expresses a measure of profitability in a given period. Let us illustrate the procedure for studying the return on assets indicator according to the data of the analyzed organization.

As can be seen from the table, the actual level of return on assets exceeded the planned level by 0.16 points. This was directly influenced by two factors:

• above-plan increase in net profit in the amount of 124 thousand rubles. increased the level of return on assets by: 124 / 21620 * 100% = + 0.57 points;
• an above-plan increase in the enterprise's assets in the amount of 993 thousand rubles. decreased the level of return on assets by: + 0.16 - (+ 0.57) = - 0.41 points.

The total influence of two factors (balance of factors) is: +0.57+(-0.41) =+0.16.

So, the increase in the level of return on assets compared to the plan took place solely due to an increase in the amount of net profit of the enterprise. At the same time, the increase in average cost, others, also reduced the level return on assets.

For analytical purposes, in addition to indicators of profitability of the entire set of assets, indicators of profitability of fixed assets (funds) and profitability are also determined working capital(assets).

Let us present the profitability indicator of fixed production assets (otherwise called the capital profitability indicator) in the form of the following formula:

The profit remaining at the disposal of the enterprise multiplied by 100% and divided by the average cost of fixed assets.

Profit remaining at the disposal of the enterprise multiplied by 100% and divided by the average value of current assets.

Return on Investment

The return on invested capital (return on investment) indicator expresses the efficiency of using funds invested in the development of a given organization. Return on investment is expressed by the following formula:

Profit (before income tax) 100% divided by the currency (total) of the balance sheet minus the amount of short-term liabilities (total of the fifth section of the balance sheet liabilities).

Return on equity

In order to obtain an increase through the use of a loan, it is necessary that the return on assets minus interest on the use of a loan is greater than zero. In this situation economic effect received as a result of using the loan will exceed the costs of attracting borrowed sources funds, that is, interest on the use of the loan.

There is also such a thing as financial leverage, which is the share (share) of borrowed sources of funds in total amount financial sources of formation of the organization's property.

The ratio of the sources of formation of the organization's assets will be optimal if it provides the maximum increase in return on equity capital in combination with an acceptable amount of financial risk.

In some cases, it is advisable for an enterprise to obtain loans even in conditions where there is a sufficient amount of equity capital, since the return on equity capital increases due to the fact that the effect of investing additional funds can be significantly higher than the interest rate for using a loan.

Creditors of this enterprise just as its owners (shareholders) expect to receive certain amounts of income from the provision of funds to this enterprise. From the point of view of creditors, the profitability (price) indicator of borrowed funds will be expressed by the following formula:

The fee for using borrowed funds (this is the profit for lenders) multiplied by 100% divided by the amount of long-term and short-term borrowed funds.

Return on total capital investment

A general indicator expressing the efficiency of using the total amount of capital available to the enterprise is return on total capital investment.

This indicator can be determined by the formula:

Expenses associated with attracting borrowed funds plus profit remaining at the disposal of the enterprise multiplied by 100% divided by the amount of total capital used (balance sheet currency).

Product profitability

Product profitability (profitability production activities) can be expressed by the formula:

The profit remaining at the disposal of the enterprise multiplied by 100% divided by the total cost of products sold.

The numerator of this formula can also use the profit indicator from sales of products. This formula shows how much profit an enterprise has from each ruble spent on the production and sale of products. This profitability indicator can be determined both for the organization as a whole and for its individual divisions, as well as for certain species products.

In some cases, product profitability can be calculated as the ratio of the profit remaining at the disposal of the enterprise (profit from product sales) to the amount of revenue from product sales.

• from changes in the structure of sold products. An increase in the share of more profitable types of products in the total amount of production helps to increase the level of profitability of products.;
• changes in product costs have an inverse effect on the level of product profitability;
• change in the average level of selling prices. This factor has a direct impact on the level of profitability of products.

Return on sales

One of the most common profitability indicators is return on sales. This indicator is determined by the following formula:

Profit from sales of products (works, services) multiplied by 100% divided by revenue from sales of products (works, services).

Return on sales characterizes the share of profit in revenue from product sales. This indicator is also called the rate of profitability.

If the profitability of sales tends to decrease, then this indicates a decrease in the competitiveness of the product in the market, as it indicates a reduction in demand for the product.

Let's consider the procedure for factor analysis of the return on sales indicator. Assuming that the product structure remains unchanged, we will determine the impact on the profitability of sales of two factors:

• changes in product prices;
• change in product costs.

Let us denote the profitability of sales of the base and reporting period, respectively, as and .

Then we obtain the following formulas expressing the profitability of sales:

Having presented profit as the difference between revenue from sales of products and its cost, we obtained the same formulas in a transformed form:

Legend:

∆K— change (increment) in profitability of sales for the analyzed period.

Using the method (method) of chain substitutions, we will determine in a generalized form the influence of the first factor - changes in product prices - on the return on sales indicator.

Then we will calculate the impact on the profitability of sales of the second factor - changes in product costs.

Where ∆K N— change in profitability due to changes in product prices;

∆K S— change in profitability due to changes in . The total influence of two factors (balance of factors) is equal to the change in profitability compared to its base value:

∆К = ∆К N + ∆К S,

So, increasing the profitability of sales is achieved by increasing prices for products sold, as well as reducing the cost of products sold. If the share of more profitable types of products in the structure of products sold increases, then this circumstance also increases the level of profitability of sales.

To increase the level of profitability of sales, the organization must focus on changes in market conditions, monitor changes in product prices, constantly monitor the level of costs for production and sales of products, as well as implement flexible and reasonable assortment policy in the field of production and sales of products.

Calculating indicators for basic financial analysis will help an organization of any scale of activity analyze the efficiency of using existing resources and property.

Analysis methods

You can analyze the indicators:

• based on the balance sheet and on the basis of the financial results statement (OFR);
• vertically of reports, determining the structure of financial indicators and identifying the nature of the influence of each reporting line on the result as a whole;
• horizontally, by comparing each reporting item with the previous period and establishing dynamics;
• using coefficients.

Let's take a closer look at the last method of analysis. Let's look at the return on assets ratio and how to calculate it.

Return on assets characterizes the efficiency of using the organization's property and the sources of its formation. This concept is identified with the concepts of efficiency, profitability, profitability of the organization as a whole or business activity. It can be calculated in several ways.

Methods for calculating profitability

Return on total assets shows how many kopecks of profit each ruble invested in its property (current and non-current funds) brings to the organization, ROA. The return on assets (formula) is calculated from the balance sheet and the financial capital as follows:

Page 2300 OFR “Profit, loss before tax” / line 1600 of the balance sheet × 100%.

Net return on assets is calculated as follows:

Page 2400 OFR “Net profit (uncovered loss)” / line 1600 of the balance sheet × 100%.

Profitability of sources of formation of the organization’s property:

Page 2300 OFR “Profit, loss before tax” / Total section III balance × 100%.

As a characteristic, economic return on assets shows the efficiency of an organization. Normal values ​​of the coefficients should be in the range greater than 0. If the calculated coefficients are equal to 0 or negative, then the company is operating at a loss, and it is necessary to take measures for its financial recovery.

Return on investment, RONA, shows how much profit the company receives for each unit invested in the company's activities. The calculation is made based on two indicators:

• line 2400 OFR “Net profit (uncovered loss)”;
• NA on balance (line 1600 - line 1400 - line 1500).

Calculation examples

Judging by the reporting of RAZIMUS LLC, profitability:

• total assets is equal to 8964 / 56,544 × 100% = 15.85%;
• net assets is 7143 / 56,544 × 100% = 12.33%;
• sources of property formation - 8964 / 25,280 × 100% = 35.46%;
• The NA will be equal to 7143 / (56,544 - 11,991 - 19,273) × 100% = 28.25%.

In addition to the characteristics financial situation company and the effectiveness of its investments, profitability affects the interest in your company from the tax authorities. Thus, a low indicator may serve as a reason for including the company in the on-site inspection plan (clause 11, section 4 of the GNP Planning Concept). For the tax authorities, the indicator will be low if it is 10% or more less than the similar indicator for the industry or for the type of activity of the company. This will be the reason for checking.

Thus, having calculated the profitability, you can independently assess whether you are subject to an on-site inspection or not. Industry average values ​​of indicators change annually and are posted on the website of the Federal Tax Service of Russia until May 5.

How to evaluate how correctly and effectively a company uses its capabilities? How can you value a company in order to sell it or attract investors? For competent analysis, relative and absolute indicators, which allow us to draw conclusions not only about the monetary value, but also about the prospects for purchasing/investing in the project. One of these indicators is return on assets, the calculation formula for which will be given below. In our article you will learn about what this term means, when it is used and what it shows.

Introduction

For a competent assessment economic activity it is necessary to combine relative and absolute indicators. The first talk about how profitable and liquid the company is, whether it has prospects and chances to remain on the market during crises. It is by relative indicators that two companies operating in the same fields are compared.

Return on assets shows the efficiency of your property

Absolute indicators are numerical/monetary values. This includes profit, revenue, product sales volumes and other values. A correct assessment of an enterprise is possible only by comparing two indicators.

What is RA

The term “return on assets” sounds like English language as return on assets and has the abbreviation ROA. Knowing it, you can understand how effectively the company uses its existing assets. This is a very important indicator that allows you to conduct a global analysis of your company’s economic activities. That is, to put it simply, return on assets is the efficiency of your property.

Currently, three types of ROA are used:

1. Classic return on assets (ROA).
2. Profitability of existing current assets.
3. Profitability of existing non-current assets.

Let's look at these concepts. Current assets describe the company's existing assets, which are indicated in the balance sheet (section number 1), as well as in lines 1210, 1230 and 1250. This property must be used for a production cycle or one calendar year. These assets influence the cost of a company's final service or manufactured product. This usually includes:

1. Existing accounts receivable.
2. Value added tax.
3. Working capital “frozen” in warehouses and production.
4. Currency and other equivalents.
5. Various short-term loans.

The higher the return on assets, the more profit the company makes

Experts divide OO into three types:

1. Cash (loans, short-term investments, VAT, etc.).
2. Material: raw materials, workpieces, supplies.
3. Intangible: receivables and equivalents.

Second, no less important concept, these are non-current assets of the enterprise. This term includes all property that has been in use for more than a year and is displayed in lines 1150 and 1170. These assets do not lose their properties over a long period of time (but are subject to depreciation), therefore they add only a small part to the cost of the final service or product. This term includes:

• key property of the company (office and industrial buildings, transport, equipment, machines);
• classic intangible assets (reputation, brand, licenses, existing patents, etc.);
• existing long-term loans and liabilities.

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These assets are also divided into three types, like current assets.

How to calculate

In order to find out the return on assets ratio, you can use the formula (PR/ASR)*100%. The formula may also look like this: (PE/Asp)*100%. By taking profit data and calculating the corresponding values, you will find out how much money each ruble invested in the company’s property brings in and whether the assets can generate profit at all.

A high return on assets ratio is usually observed in trading and innovative enterprises

To find how much profit your assets are generating, you can use the TR-TC formula. Here TR stands for cost revenue and TC stands for cost of the product/service. To find TR, use the formula P*Q, where Q is sales volume and P is the cost of one product.

To find the cost, you need to find data on all the costs of the enterprise for a production cycle or a certain time and add them up. Costs include rent, public utilities, salary for workers and management, depreciation, logistics, security, etc. Knowing the cost, you can calculate the net profit: TR-TC-PrR+PrD-N. Here N stands for taxes, PrR stands for other expenses, PrD stands for other income. PrD and PrR are terms that denote income and expenses that are not directly related to the company’s activities.

We count according to the balance

There is a special formula for return on assets on the balance sheet - it is usually used if the data is completely open . The balance sheet indicates the number and value of assets at the beginning and end of the year. You can find out profitability quite simply - calculate the arithmetic average for each section of the balance sheet from lines 190 and 290. This way you will find out the cost of non-current and current assets. IN small companies the calculation is done on lines 1150 and 1170, as a result you will find out the average annual cost of VnA.

Then we use the formula ObAsp = ObAnp + ObAkp. Here everything is the same as in the previous formula, and ObA denotes the value of current assets. Now we add the two resulting numbers and get the average annual value of the company’s property. This is done using the formula Asp = ObAsr + InnAsr.

Return on assets is a relative indicator that can be used to compare businesses

Based on this, we can conclude: return on assets shows the return on your company’s assets. The higher this ratio, the higher the profit and the lower the costs. That is why you need to strive to make your property more profitable, and not a hanging dead weight and devouring your existing reserves.

Return on assets (ROA) is an indicator of how a company manages its existing assets to generate revenue. If ROA is low, your asset management may be ineffective. High rate ROA, on the contrary, indicates the smooth and efficient functioning of the company.

Formula for calculating a company's return on assets

ROA is usually expressed as a percentage. The calculation is made by dividing the net profit for the year by the total value of assets. If, for example, a clothing store's net income was 1 million and its total assets were 4 million, then ROA would be calculated as follows:

1/4 x 100 = 25%

Calculating ROA allows you to see the return on investment and assess whether sufficient revenue is being generated from the available assets.

ROA profitability management

The head of the enterprise studies the ROA indicator at the end of the year. If ROA is high, it is a good sign that the company is getting the most out of its existing assets. Comparing it with other indicators, such as return on investment, we can conclude that further investment is advisable, since the company is able to use investments with high efficiency.

Studying low ROA is vital for effective management company. If this ratio is consistently low, it may indicate that either management is not using existing assets effectively enough, or those assets are no longer valuable. For example, in the case of the same clothing store, it may turn out that profits can be increased by reducing the retail space, therefore, such an asset as a large area is no longer valuable.

Banks and potential investors pay attention to ROA and ROI indicators before deciding to provide a loan or further investment. If similar companies generate more revenue with similar inputs, investors may flock to them or conclude that management is not managing its assets effectively.

Increase in gross income

ROA can motivate management to do more efficient use assets. Seeing that revenue is not as high as it should be, managers make appropriate adjustments to the activities of the enterprise. ROA can also show what improvements can be made to increase gross income through proper asset management. This is in any case better than endlessly investing in a company, hoping for the best.

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