Given the following, how do you find the ROA?

Profit margin 7.5%
Sales 26,000,000
Debt 9,500,000
Total assets 19,000,000

Net income 1,950,000

Return on Assets (ROA) = Total assets / Net Income

In this case, we have to calculate the Net Income first.

NI = Sales * Profit margin
= 26,000,000 * 0.075
= 1,950,000

ROA = 19,000,000 / 1,950,000
= 9.74


Good luck :)