One key metric that offers valuable insights into a company’s financial health is the return on average assets (ROAA). This financial ratio measures how effectively a company uses its assets to ...

How to Calculate ROAA Before calculating ROAA, you must gather accurate financial data. Start by obtaining the company’s net income, which is typically found on the income statement.

Return on assets To calculate a bank's return on assets, you need to know two pieces of information. First, you need to find the net income, which can be found on the bank's income statement.