What is the return on assets assuming a net profit before tax of $15,000 and $30,000 total assets?

To calculate the return on assets (ROA), you use the formula:

[

\text{ROA} = \frac{\text{Net Profit before Tax}}{\text{Total Assets}} \times 100

]

In this scenario, the net profit before tax is $15,000, and the total assets amount to $30,000. Plugging these numbers into the formula gives:

[

\text{ROA} = \frac{15,000}{30,000} \times 100

]

Calculating this, you first divide $15,000 by $30,000, which equals 0.5. Then, multiplying by 100 provides the percentage:

[

0.5 \times 100 = 50%

]

Therefore, the return on assets in this case is 50%. This figure effectively demonstrates how efficiently a company is using its assets to generate profits. A ROA of 50% indicates a strong ability to convert assets into net earnings, which can be considered favorable.