Return on net assets
From Infogalactic: the planetary knowledge core
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]
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
<templatestyles src="Asbox/styles.css"></templatestyles>
 |
This finance-related article is a stub. You can help Wikipedia by expanding it. |
