Return on net assets
 | This article needs additional citations for verification. (December 2014) |
The return on net assets (RONA) is a measure of financial performance of a company which takes the use of assets into account. Higher RONA means that the company is using its assets and working capital efficiently and effectively.[1] RONA is used by investors to determine how well management is utilizng assets.[2]
Basic formulae
Return on net assets = net income / (Fixed assets + working capital)
where Working capital = (current assets minus current liabilities)
In a manufacturing sector, this is also calculated as:
Return on net assets = (plant revenue - costs) / net assets
See also
References
- ^ Return on Net Assets (RONA)
- ^ root (2003-11-26). "Return On Net Assets - RONA". Investopedia. Retrieved 2016-10-10.
 | This finance-related article is a stub. You can help Wikipedia by expanding it. |