1, return on total assets = (total profit+interest expense)/average total assets X 100% average total assets = (total assets at the beginning of the year+total assets at the end of the year) /2 indicates the income level of all assets of the enterprise, which fully reflects the profitability and input-output status of the enterprise. ?

2. return on total assets return on total assets = (net profit/average total assets) × 100% average total assets = (total assets at the beginning of the year+total assets at the end of the year) /2) The level of return on total assets directly reflects the company's competitive strength and development ability, and is also an important basis for determining whether the company should operate in debt.

Extended data:

function

1, which indicates the income level of all assets of the enterprise and fully reflects the profitability and input-output status of the enterprise. Through the in-depth analysis of this index, all parties can pay more attention to enterprise asset management and promote enterprises to improve the income level of unit assets.

2. In general, enterprises can compare this indicator with the market capital interest rate. If this index is greater than the market interest rate, it shows that enterprises can make full use of financial leverage to operate and get as much income as possible.

3. The higher the index, the better the input-output level of the enterprise, and the more effective the asset operation of the enterprise.

Baidu Encyclopedia: Return on Total Assets