Total Assets Calculator
Calculate total assets from current and non-current categories, verify the accounting equation, and compute Return on Assets (ROA).
Total Assets Formula
Total Assets = Current Assets + Non-Current (Long-Term) Assets
This is one side of the fundamental accounting equation:
Total Assets = Total Liabilities + Shareholders’ Equity
If your books are correct, both sides must always be equal. This is the foundation of double-entry bookkeeping.
Current vs. Non-Current Assets
Current Assets — expected to be converted to cash within 12 months:
- Cash and cash equivalents
- Accounts receivable (money owed by customers)
- Inventory
- Prepaid expenses (insurance, subscriptions paid in advance)
- Short-term investments
Non-Current (Long-Term) Assets — held for more than 12 months:
- Property, Plant & Equipment (PP&E), net of depreciation
- Intangible assets (patents, trademarks, goodwill)
- Long-term investments
- Right-of-use assets (leases)
Return on Assets (ROA)
ROA measures how efficiently a company uses its assets to generate profit.
ROA (%) = Net Income / Total Assets × 100
ROA Benchmarks by Industry
| Industry | Typical ROA |
|---|---|
| Commercial banks | 0.5–1.5% |
| Retail (general) | 3–7% |
| Manufacturing | 4–8% |
| Technology | 8–15% |
| Software / SaaS | 10–20% |
| Utilities | 2–5% |
Worked Example
A mid-sized manufacturer has:
- Current Assets: Cash $50k, AR $120k, Inventory $80k, Prepaid $10k = $260,000
- Non-Current Assets: PP&E net $400k, Patents $40k = $440,000
- Total Assets = $700,000
With net income of $56,000:
- ROA = $56,000 / $700,000 × 100 = 8% — healthy for manufacturing
Balance Sheet Check
If you also know your total liabilities and shareholders’ equity, they should sum to total assets. Any discrepancy indicates a bookkeeping error.
Pro Tips
- High asset totals don’t always mean financial strength — check the quality of assets. Goodwill and intangibles may be overvalued if acquisitions underperform.
- Rising accounts receivable without matching revenue growth may signal collection problems.
- Asset-light businesses (software, consulting) often have very high ROA despite low total assets.
- Depreciate PP&E correctly — using net (book) value, not gross cost.