how can i calculate a company s roa 
roa is calculated by dividing a firm s net income by the average of its total assets it is then expressed as a percentage net profit can be found at the bottom of a company s income statement and assets are found on its balance sheet average total assets are used in calculating roa because a company s asset total can vary over time due to the purchase or sale of vehicles land equipment inventory changes or seasonal sales fluctuations as a result calculating the average total assets for the period in question is more accurate than the total assets for one period 