View source for Return on net assets

The '''return on net assets''' ('''RONA''') is a measure of financial performance of a company which takes the use of assets into account.<ref>{{Cite news|url=http://blogs.berkeley.edu/2015/12/22/innovation-outposts-and-the-evolution-of-corporate-rd/|title=Innovation outposts and the evolution of corporate R&D|date=2015-12-22|work=The Berkeley Blog|access-date=2018-01-19|language=en-US}}</ref><ref>{{Cite news|url=https://www.cic.edu/news-information/independent-newsletter/fall-2017/financial-resilience|title=Report Highlights Financial Resilience of Small and Mid-Sized Private Institutions|work=The Council of Independent Colleges|access-date=2018-01-19|language=en-US}}</ref> Higher RONA means that the company is using its assets and working capital efficiently and effectively.<ref>[http://www.readyratios.com/reference/profitability/return_on_net_assets_rona.html Return on Net Assets (RONA)]</ref> RONA is used by investors to determine how well management is utilizing assets.<ref>{{Cite news|url=http://www.investopedia.com/terms/r/rona.asp|title=Return On Net Assets - RONA|last=root|date=2003-11-26|newspaper=Investopedia|language=en-US|access-date=2016-10-10}}</ref>

==Basic formulae==
:{{math|1=Return on [[net assets]] = {{sfrac|[[net income]] | ([[Fixed assets]]) + ([[working capital]])}}}}
where 
:{{math|1=[[Working capital]] = ([[current assets]]) &minus; ([[current liabilities]])}}<ref>{{Cite web|url=http://www.ualr.edu/haterry/introand.htm|title=Intro and Financial Analysis|website=www.ualr.edu|access-date=2018-01-19}}</ref>

In a manufacturing sector, this is also calculated as:
:{{math|1=Return on net assets = {{sfrac|(plant revenue) &minus; costs| ([[net assets]])}}}}

==See also==
*[[Financial ratio]]

==References==
{{Reflist}}

{{Financial ratios}}

{{DEFAULTSORT:Return On Net Assets}}
[[Category:Financial ratios]]
[[Category:Investment indicators]]

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