Total return on assets = (total profit + interest expense)/average total assets X 100%, where average total assets = (total assets at the beginning of the period + total assets at the end of the period)/2

Total return on assets = (net profit + interest expense + income tax)/average total assets X 100%, where total profit refers to the total profit realized by the enterprise All profits, including the enterprise's operating profit for the year, investment income, subsidized income, net non-operating expenditures and other items. The interest expense refers to the interest on borrowing and interest on debt actually incurred by the enterprise in the course of production and operation. The sum of total profits and interest expenses for EBITDA, is the total of all profits and interest expenses realized by the enterprise in the year.

Extended information

1, the higher the return on total assets, indicating that the higher the efficiency of asset utilization, indicating that the enterprise in increasing revenue and other aspects of the good results; the lower the indicator, indicating that the utilization of low efficiency, the reason for the difference, to improve the profitability of sales, accelerate the turnover of funds to improve sales, management level. The total return on assets indicates the level of all assets of the enterprise to obtain income, which comprehensively reflects the profitability of the enterprise and the input-output situation. Through the analysis, it can enhance the attention of all parties to the operation of the enterprise assets, and promote the enterprise to improve the level of return per unit of assets.

2, in general, the enterprise can be based on this indicator and the market capital interest rate comparison, if the indicator is greater than the market interest rate, it shows that the enterprise can make full use of the financial leverage, debt management, to obtain as much as possible. The larger the total assets, the lower the total return on assets, the heavy assets of this indicator will not be too high; small businesses with fewer assets, sometimes this indicator is very high, but not stable.

3, affecting the total return on assets of two factors: total asset turnover, as a reflection of the operating capacity of the enterprise's indicators, can be used to illustrate the efficiency of the use of enterprise assets. Is a direct reflection of the operating results of enterprise assets; Second, the sales of EBITDA margin, reflecting the profitability of the production and operation of enterprise goods, the stronger the profitability of the product. The higher the sales margin. So the profitability of asset management by the profitability of commodity operations and asset operation efficiency in two aspects. The better the level of enterprise input and output, the more effective the operation of the enterprise's assets,