Calculate the return on assets (ROA), a profitability ratio that measures how efficiently a company uses its assets to generate profits.

The return on assets is calculated by dividing the net income by the average total assets. Note that it is false to take the total assets at the end of the period given that income statements report over the period whereas a balance sheet reports on the period.

The formula is as follows:

\[\text{Return on Assets} = \text{Net Income} / \text{Average Total Assets}\]

Also known as: ROA, asset profitability.

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Calculate the Return on Assets (RoA) in Python

The Return on Assets (RoA) is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_return_on_assets as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

roa_ratios = toolkit.ratios.get_return_on_assets()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.2806 0.2836 0.275 0.2613 0.3093
TSLA 0.0968 0.1742 0.1588 0.0624 0.0292

Parameters

get_return_on_assets accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Gross Margin Operating Margin Net Profit Margin Interest Burden Ratio Income Before Tax Profit Margin Effective Tax Rate Return on Equity (RoE) Return on Invested Capital (RoIC) Income Quality Ratio Return on Tangible Assets (RoTA) Return on Capital Employed (RoCE) Net Income per EBT

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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