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return on total assets
I. Significance

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.

Second, the calculation formula

Return on total assets = (total profit+interest expense)/average total assets X 100% The total profit refers to all the profits realized by the enterprise in that year, including the operating profit, investment income, subsidy income and net non-operating expenses of the enterprise in that year. If it is a loss, it is indicated by "-". Interest expense refers to the loan interest and creditor's rights interest actually paid by the enterprise in the process of production and operation. The sum of total profits and interest expenses is earnings before interest and tax, which refers to the total profits and interest expenses realized by the enterprise in that year. Data are taken from profit and profit distribution table and enterprise basic situation table. The average total assets refer to the average of the total assets of an enterprise at the beginning and the end of the year, and the data are taken from the balance sheet of the enterprise.

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

Third, the calculation example

According to the data, XYZ Company has an annual net profit of 8 million yuan, income tax of 3.75 million yuan, financial expenses of 4.8 million yuan and total assets of 84 million yuan at the end of the year. In 2002, the net profit was 6.8 million yuan, the income tax was 3.2 million yuan, the financial expenses were 5.5 million yuan, and the total assets at the end of the year were/kloc-0.0 million yuan. Assuming that the total assets at the beginning of 200 1 are 75 million yuan, the return on total assets of XYZ Company is calculated as follows:

200 1 year return on total assets = (800+375+480)/[(7500+8400)/2] *100% = 20,82%.

Return on total assets in 2002 = (680+320+550)/[(8400+10000)/2] *100% =16, 85%.

As can be seen from the calculation results, the return on total assets of XYZ Company in 2002 is much lower than that of the previous year. It is necessary to analyze the use of the company's assets, increase production and save, improve management in combination with cost-benefit indicators, improve asset utilization efficiency and enterprise management level, and enhance profitability.