The return on net assets (RONA) is a measure of financial performance of a company which takes the use of assets into account.[1][2] Higher RONA means that the company is using its assets and working capital efficiently and effectively.[3] RONA is used by investors to determine how well management is utilizing assets.[4]
Basic formulae
Return on net assets = net income / (Fixed assets + working capital)
where Working capital = (current assets minus current liabilities)[5]
In a manufacturing sector, this is also calculated as:
Return on net assets = (plant revenue - costs) / net assets
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