Return on Assets vs Return on Investment 1) Is Return on Investment same as Return on Assets? 
There are so many different definition in books so I am now confused...

2) Is ROA = Profit before taxes/Total Assets or Profit after taxes/Total Assets

3) I know to find ROI for some investment or project, but is it possible to find ROI for company from income statement and balance sheet?
No. 


Return on assets = net income/assets.

ROI = an informal term roughly corresponding to return on starting capital, or net income/starting capital. Starting capital is any money invested in the business.

Let's say you take out a 500k mortgage on a home with a 50k downpayment. That means 550k of assets. Net of everything you make a $10000 profit from rental income or whatever.

Your ROA is 10k/550k because even though you don't own the home free and clear, the house is still an asset. 

ROI is a more informal term comparing how much you invested versus the return. In this example ROI is 10k/50k because you only paid 50k for the home.


ROA uses net income, which means after tax.