Question

Calculate the ROA from the following chart. Show all formulas and work.

(dollar figures in millions)
Total Deposits 10,219,681
Net Income 106,354
Equity Capital 1,497,533
Total Loans 7,161,815
Total Assets 13,544,967

Answer 1

0.79%

Step-by-step explanation:

ROA is the return on assets. The formula for calculating ROA is as below.

ROA = Net Income / Total Assets or Net income / average total assets.

Net income = Net Income 106,354

Net Assets = Total Assets 13,544,967

ROA = 106,354/13,544,967

ROA = 0.00785192

ROA = 0.79%