Return on Net Assets (RONA)

Ratio: Operating Income as a percentage of the Net Assets

RONA shows the profit that managers are making as a percentage of the assets given them to manage. Net Assets in this sense means the amount of Assets derived from Equity and long-term debt. Net Assets does not include supplier Accounts Payable (A/P) and other liabilities which the managers have generated themselves. Similarly, Operating Income does not take into account the finance charges and taxes; i.e. the items that managers have no control over.

See also Return On Assets (ROA).

gb flag de flag fr flag es flag pt flag il flag it flag


Full it flag term list.