Investors use the return on assets ratio formula to evaluate a company. The greater a return, the higher valuation investors are likely to provide.

Learn how to calculate ROI (Return on Investment) and use it to evaluate the profitability of your investments. Discover the ROI formula and practical examples.

The formula to calculate corporate rate of return on assets is quite simple. All you have to do to calculate it is divide a company’s net income by its total assets.