Return on assets

Return on assets are net income plus interest expense, divided by average total assets. This ratio measures a company's success in using its assets to earn income for the people who finance the business; also called rate of return on total assets.

Definitions

According to Managerial Accounting by Braun, Tietz (5th edition),

Return on assets. Net income plus interest expense, divided by average total assets. This ratio measures a company's success in using its assets to earn income for the people who finance the business; also called rate of return on total assets.