Question 1: What is the significance of return on total assets? Hello classmate, I am happy to answer your questions!

The higher the return on total assets, the higher the asset utilization efficiency, indicating that the company has achieved good results in increasing revenue and saving funds; the lower the indicator, the lower the asset utilization efficiency. The reasons for the differences should be analyzed to increase sales profit margins, accelerate capital turnover, and improve business management levels.

1. Indicates the level of income obtained from all assets of the enterprise, comprehensively reflecting the profitability and input-output status of the enterprise. Through in-depth analysis of this indicator, we can enhance the attention of all parties to corporate asset management and promote enterprises to increase the income level of unit assets.

2. Under normal circumstances, the company can compare this indicator with the market capital interest rate. If the indicator is greater than the market interest rate, it means that the company can make full use of financial leverage, carry out debt operations, and obtain as much capital as possible. income.

3. The higher the indicator, the better the enterprise’s input-output level and the more effective the enterprise’s asset operations are.

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Question 2: Of course, a high return on total assets is good. It is equivalent to the return that every 1 yuan of your assets brings you. There is no reasonable range. Each industry is different and the risk preference is also different

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Question 3: How to calculate the return on total assets? Total profit / average balance of total assets * 100% = return on total assets

This ratio reflects the profit return rate of the company's total assets, that is, total assets Profitability.

If there is no profit, it is a negative number. If it is a negative number, it is really meaningless to analyze the profit situation of two years and compare it with this ratio.

Question 4: How to calculate return on total assets? Return on total assets = net profit/average total assets average total assets = (total assets at the beginning of the period + total assets at the end of the period)/2

Question Five: Return on total assets and return on total assets It depends on what is the purpose of your analysis?

If you analyze profitability, use "return on total assets". This indicator is an indicator for analyzing a company's profitability and measuring its profitability. The level of return on total assets directly reflects the company's competitive strength and development capabilities, and is also an important basis for deciding whether the company should use debt to operate.

If you analyze the return on investment, use "return on total assets". Through the analysis of this indicator, you can increase the attention of all parties to the enterprise's asset management and promote the enterprise to increase the income level of unit assets. The higher this indicator is, the better the company's input-output level is and the more effective the company's asset operations are.

Question 6: Calculation formula of return on total assets Total return on assets = net profit/average total assets

Average total assets = (total assets at the beginning of the period + total assets at the end of the period)/ 2

Question 7: What does return on total assets mean? Hello classmate, I am happy to answer your questions!

Also known as asset rate of return and return on assets, it is the ratio of a company's net profit to the average total assets. The calculation formula is:

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

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Question 8: What is the difference between return on total assets and return on assets? Please tell me profit before interest and tax (EBIT) = profit after tax + corporate income tax + interest expense average total assets = (beginning balance of assets + Year-end balance) * 1/2 Net profit = After-tax profit is average. Return on assets analyzes the profitability of assets.

Decomposition: Return on total assets = Profitability of total assets = Operating capabilities of total assets × Product profitability = (Main business income/average total assets) × (EBIT/Main business income) = Total assets Turnover rate Risk, this cost must be internalized. Because the internalization of costs corresponds to the internalization of reform benefits, as the subject of induced institutional changes, its reforms are to pursue potential profits, and of course its political costs should be internalized. As the subject of forced institutional changes, as long as the institutional arrangement is successful, it can obtain the maximum rent, support, huge political achievements, and even promotion of position. Therefore, the reform costs should be borne by the reform subjects themselves.

Investment profit rate: also known as investment return rate, refers to the ratio between the profit obtained by the investment center and the amount of investment. The calculation formula is:

Investment profit rate = profit/investment amount * 100%

Investment profit rate = (sales income/investment amount) × (cost/sales income) × ( Profit/cost expense)

= Capital turnover rate × sales cost rate × cost expense profit rate

The investment amount in the above formula refers to the balance of the investment center’s total assets after deducting external liabilities. , that is, the net assets of the investment center. Therefore, this indicator can also be called the profit rate on net assets. It mainly explains the contribution of each dollar of assets supplied by the investment center using the company's property rights to the overall profit, or the degree of contribution of the investment center to the owner's equity.

The debt-to-equity ratio, also known as the property rights ratio, reflects the degree of protection of the owner's equity to the creditor's equity

=Liabilities/shareholders' equity

Total asset contribution rate

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It reflects the profitability of all assets of the enterprise, is a concentrated expression of the enterprise's operating performance and management level, and is the core indicator for evaluating and assessing the enterprise's profitability. The calculation formula is:

Total asset contribution rate (%) = (total profit + total tax + interest expense) / average total assets × 100 %

Among them: total tax is product sales The sum of taxes and surcharges and the value-added tax payable; the average total assets are the arithmetic mean of the total assets at the beginning and end of the period. Factors affecting the contribution rate of total assets

There are two factors that affect the contribution rate of total assets: First, the sum of total profits and taxes and interest expenses is directly proportional to the contribution rate of total assets;

The second is the average total assets, which is inversely proportional to the total asset contribution rate.

Return on total assets = (total profits + interest expenses) / average total assets Subsidy income, net non-operating expenses and other items, if they are losses, are represented by a - sign.

Interest expenses refer to the actual expenditures on borrowing interest, creditor's rights interest, etc. made by the enterprise during the production and operation process.

The sum of total profits and interest expenses is profit before interest and tax, which refers to the total of all profits and interest expenses realized by the company in the current year. The data is taken from the company's "Profit and Profit Distribution Statement" and "Basic Information Statement". The average total assets refers to the average of the company's total assets at the beginning and the end of the year. The data is taken from the company's "Balance Sheet". Average assets = (total assets at the beginning of the year) Number + total assets at the end of the year)/2

Question 10: What is the difference between the two formulas of return on total assets, and what situations are they applicable to? 10 points Return on total assets = (total profit + interest expense)/ The average balance of assets is the interest before interest and taxes