Return on Asset = Net Income / Total Assets
For a company that consolidates financial statements from its subs, for the Net Income in above formula, do you use Net Income attributable to Parent, or Net Income (=Net Income attributable to Parent + Net Income attributable to Noncontrolling Interest)?
Thank you, Brian
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To get the true ROA for the company you should take the (total NI - NCI income) / (total assets - NCI assets). ie you are taking the company's NI/Assets plus their portion of the subsidiary's ROA.
You can just use the NI / Total assets. It is almost impossible to breaki things up like what above has mentioned (i.e. how do you split goodwill up and etc)
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