Formula. Formula. RONA is an alternative metric to the more commonly used formula, Return on Assets (ROA). Example. Definition Return on Net Assets RONA. What is Return on Net Assets (RONA)? The higher returns will give better the ratio. Higher RONA means that the company is using its assets and working capital efficiently and effectively.

A business has net income of $2,100, fixed assets of $8,000, and net working capital of $3,000. RONA is used by investors to determine how well management is utilizing assets. Return on net assets is 17% for Ufall and 21% for Klineec Net assets = Equity therefore the above figures indicates return on equity. Both ratios have little to no differences. The biggest difference between them is that the ROA uses the total assets instead of net assets. The return on net assets measures how efficiently a company is using its net assets (its fixed assets and net working income) in order to make a profit.The higher the ratio is, the better the company's performance is thought to be. Return on Net Assets = (Net Income / (Fixed Assets + Net Working Capital) x 100%.
The return on net assets ratio (RONA) is a financial performance measure that shows a comparison of a firm's net income to its net assets.

The Return On Net Assets calculation formula is as follows:

A ratio of a company's financial performance. Often, people believe that the return on net assets is the same as the return on equity, which uses equity instead of net assets as the denominator. The Return On Net Assets Calculator is used to calculate the return on net assets (RONA) ratio. The return on the equity (RONA) for the competitor is 4% higher then returns on our company. Return On Net Assets (RONA) equals the Net Operating Profit After Tax divided by the sum of cash, the working capital requirement and the fixed assets.A strong virtue of using RONA compared to traditional methods for measuring company success is that it also considers the assets a … Eine weitere Rentabilitätskennzahl, welche den wahren Betriebszweck eines Unternehmens beleuchtet, ist die Kennzahl „Return on Net Assets“. It is listed as a percentage.
The return on net assets (RONA) is a measure of financial performance of a company that takes the use of assets into account. Return on Net Assets (RONA) is a ratio of net income to net assets. Generally, a higher result indicates that a company is making good use of its working capital and fixed assets to generate income and thus implies a higher profitability. It is calculated by taking its net income and dividing it by the quantity of its fixed assets and net working income. Both the investors and banker will use this ratio for decision purposes. Return On Net Assets Definition. The return on net assets (RONA) is a measure of financial performance of a company which takes the use of assets into account. Return on equity (ROE) and return on assets (ROA) are two of the most important measures for evaluating how effectively a company’s management team is … Basic formulae.