Return on net assets

Return on net assets

(abbreviated to RONA) Profit after tax / ( Fixed assets + working capital )

It is a measure of financial performance of a company which takes the use of assets into account.

ee also

*Financial ratioNet Income / (Fixed assets + working capital [i.e. - current assets minus current liabilities] )

It is a measure of financial performance of a company which takes the use of assets into account.


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  • Return On Net Assets - RONA — A measure of financial performance calculated as: Fixed assets are tangible property used in production, such as real estate and machinery. Net working capital is calculated by taking the company’s current assets minus its current… …   Investment dictionary

  • return on net assets — Accounting. the amount of profit computed by dividing net income before interest and taxes by the cost of net assets, usually expressed as a percentage. Abbr.: RONA * * * …   Universalium

  • return on net assets — Accounting. the amount of profit computed by dividing net income before interest and taxes by the cost of net assets, usually expressed as a percentage. Abbr.: RONA …   Useful english dictionary

  • Net assets — Net assets, sometimes referred to as net worth, is the shareholders equity = assets minus liabilities. The term net assets is commonly used with charities or not for profit entities a measurement of their ability to reinvest profits toward their… …   Wikipedia

  • Return On Total Assets - ROTA — A ratio that measures a company s earnings before interest and taxes (EBIT) against its total net assets. The ratio is considered an indicator of how effectively a company is using its assets to generate earnings before contractual obligations… …   Investment dictionary

  • Return On Average Assets - ROAA — An indicator used to assess the profitability of a firm s assets. It is most often used by banks and other financial institutions as a means to gauge their performance. As return on average assets (ROAA) is calculated at period ends (quarters,… …   Investment dictionary

  • Return on capital — Return on invested capital (ROIC) is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net operating profit less adjusted taxes divided by Invested …   Wikipedia

  • Return On Assets Managed - ROAM — A measure of profits shown as a percentage of the capital that is handled. Return on assets managed is calculated by taking operating profits and dividing it by assets (which could include accounts receivable and inventory). Asset turnover and… …   Investment dictionary

  • Return on equity — (ROE) measures the rate of return on the ownership interest (shareholders equity) of the common stock owners. It measures a firm s efficiency at generating profits from every unit of shareholders equity (also known as net assets or assets minus… …   Wikipedia

  • Return on capital employed — (ROCE) is used in finance as a measure of the returns that a company is realising from its capital employed. It is commonly used as a measure for comparing the performance between businesses and for assessing whether a business generates enough… …   Wikipedia

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