1, the return on net assets refers to the ratio of net profit to net assets in the current period of an enterprise, which is the core index reflecting the profitability of an enterprise. The higher the index, the more net profit, indicating that the better the profitability of enterprises.

Return on total assets refers to the rate of return of enterprises using all assets, which reflects the total achievements of enterprises using all assets. Return on total assets reflects the utilization efficiency of the company's assets, which is a comprehensive index. The higher the index, the higher the utilization efficiency of enterprise assets, the stronger the profitability of enterprise assets, and the higher the index, the better.

2. Return on total assets = earnings before interest and tax/average total assets × 100%.

Return on net assets = net profit/average total net assets × 100%

Average total assets refer to the average of total assets at the beginning and end of a certain period. Calculation formula: average total assets = (total assets at the beginning of calculation time+total assets at the end of the period) ÷2

Earnings before interest and tax does not deduct interest or income tax, and earnings before interest and tax = enterprise net profit+interest expense paid by enterprise+income tax paid by enterprise.

Extended data:

The asset-liability ratio reflects the total assets of the enterprise, that is, the percentage of total liabilities divided by total assets at the end of the period. The asset-liability ratio reflects how much of the total assets are financed by borrowing, and can also measure the extent to which enterprises protect the interests of creditors in the liquidation process. Asset-liability ratio reflects the proportion of capital provided by creditors to total capital, also called debt operating ratio. Asset-liability ratio = total liabilities? /total assets.

References:

Baidu Encyclopedia-Return on Total Assets

Baidu Encyclopedia-Return on Assets