Return on assets

Return on assets is a tool that people often use to measure how good a business is. It looks at how much money a business can make from the things it owns (assets). To figure out the return on assets, you divide the profit a business makes by the value of all its assets combined. The answer tells you how much money the business made from every dollar of its assets. If a business has a return on assets of 10%, for example, this means it made ten cents for every dollar of assets.