What is ROA? Formula, ranges and example
What is ROA?
Return on assets (ROA) measures the profit generated relative to total assets. Hachiquant divides profit attributable to owners of the parent by average opening and closing total assets and multiplies by 100 to express it as a percentage.
Formula
ROA (%) = profit attributable to owners of the parent ÷ average total assets × 100
- Average total assets = (opening assets + closing assets) ÷ 2. Use the current filing’s same-basis opening comparative. If absent, use the prior annual closing balance only when the accounting standard and consolidation scope match; otherwise, use the closing balance alone.
- Profit falls back to total net income only when an owners’ split is not reported.
- Missing required inputs or any opening or closing assets balance used in the calculation being zero or negative makes ROA unavailable, not zero.
- A genuine trailing-twelve-month (TTM) window uses closing balances. When TTM is unavailable and the API falls back to annual data, it retains that annual period’s average-balance calculation.
- The API returns roa as a fraction: 0.1 = 10%.
- Other publications may use operating or ordinary profit; those definitions are not Hachiquant’s ROA.
Ranges and interpretation
| Range | Interpretation |
|---|---|
| <0% | A loss relative to positive assets. |
| 0% | Zero profit, not an absence of assets. |
| >0% | Profit relative to positive assets, not a universal healthy threshold. |
Worked example from a filing
Year ended March 31, 2026 (–)
IFRS · Consolidated · JPY
| Input | JPY million |
|---|---|
| Profit attributable to owners of the parent | 3,848,098 |
| Opening total assets | 93,601,350 |
| Closing total assets | 105,522,331 |
3,848,098 ÷ ((93,601,350 + 105,522,331) ÷ 2) × 100 = 3.9%
For the year ended March 31, 2026, Toyota generated about ¥3.9 of profit attributable to owners of the parent per ¥100 of average total assets. Opening and closing assets come from the comparative and current columns of the same annual filing. ROA calculated using operating or ordinary profit has a different definition.
Source elements
- Profit attributable to owners of the parent
- jpigp_cor:ProfitLossAttributableToOwnersOfParentIFRS
- CurrentYearDuration
- Opening total assets
- jpigp_cor:AssetsIFRS
- Prior1YearInstant
- Closing total assets
- jpigp_cor:AssetsIFRS
- CurrentYearInstant
What to watch
- Capital-intensive and asset-light businesses have different typical ROA levels.
- Asset sales, impairments and one-offs can change the ratio.
- Compare using the same numerator definition, accounting standard, consolidation scope, currency and period.
- Interim returns are not annualized.
- The national ranking uses latest annual figures with a 40% ROA cap to filter outliers, not a healthy threshold.