How would I calculate a new ROA? Let say that in 1999, General Mills business performed as reported but had an ITO of 7.8 instead of 6.1, how much less cash would have been tied up in inventory? What would its new ROA have been if this cash was used to pay down debt? Assume a marginal tax rate of 30% on income and an interest rate of 3% on debt. Their net profit was 534.5 million and their total assets were 4140.7 million. The total funded debt was 2317.3 million.