7/12/18 Return on net assets

 

Return on net assets (RONA) is a measure of financial performance calculated by dividing the net income of a company by the sum of its fixed assets and net working capital. Hence, it measures the efficiency of a company in generating returns on the assets it owns.

RONA can be used to assess how well a company is performing compared to others in its industry. It reveals if a company and its management are deploying assets in economically valuable ways or if the company is performing poorly compared to its peers.