Return on Net Assets
A ratio of a company's financial performance. It is calculated by taking its net income and dividing it by the quantity of its fixed assets and net working income. The return on net assets measures how efficiently a company is using its net assets (its fixed assets and net working income) in order to make a profit. The higher the ratio is, the better the company's performance is thought to be.
Return on Net Assets (RONA)
What Does Return on Net Assets Mean?
A measure of financial performance. It is calculated as shown here:
Investopedia explains Return on Net Assets
The higher the RONA is, the better a company's profit performance is.
Related Terms:
• Asset
• Net Income—NI
• Profitability Ratios
• Return on Assets—ROA
• Working Capital
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