Return on net assets

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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

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where

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In a manufacturing sector, this is also calculated as:

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See also

References

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  3. ↑ Return on Net Assets (RONA)
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