Latest Free Templates

Sunday, June 5, 2011

Return on Net Assets (RONA) Ratio Analysis

Definition: Return on Net Assets (RONA) is used to measure the financial performance of a company, calculated by taking the net income and dividing it by the quantity of its fixed assets and net working income. The higher the ratio, the better the performance.


Return on net assets = Profit after tax / (Fixed assets + net working capital)
RONA = Net income / Net assets
(Note: Net


Post a Comment