The calculation formula for return on total assets is: return on total assets = (total profits + interest expenses) / average total assets × 100 average total assets = (total assets at the beginning of the period + total assets at the end of the period) / 2.

The higher the ratio, the higher the asset utilization efficiency, indicating that the company has achieved good results in increasing revenue and saving funds. The lower the ratio, the lower the asset utilization efficiency of the enterprise. The reasons for the difference should be analyzed to increase sales profit margin, accelerate capital turnover, and improve the level of enterprise operation and management.

Return on total assets, also known as asset income rate. It refers to the ratio of the total remuneration received by an enterprise within a certain period to the average total assets. It represents the overall profitability of all assets of an enterprise, including net assets and liabilities, and is used to evaluate the overall profitability of an enterprise's use of all assets. It is an important indicator for evaluating the operating efficiency of an enterprise's assets.

Analysis of return on total assets:

Return on total assets represents the level of income earned by all assets of an enterprise, and comprehensively reflects the profitability and input-output status of the enterprise. The higher this indicator is, the better the company's input-output level is and the more effective the company's asset operations are.

Generally, a company can compare this indicator with the market 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 income as possible. When evaluating the return on total assets, it is necessary to compare and evaluate it with the ratio of the previous period and with other companies in the same industry. You can also perform factor analysis on the return on total assets.