Return on Net Assets (RONA)

Definition of Return on Net Assets (RONA):

RONA is one bottom-line measurement showing performance relative to strategic goals and objectives. More and more successful companies are utilizing RONA measurement. It provides an apples-to-apples comparison of performance that is understood by non-financial professionals.

Calculated as: RONA = Net Income /(Fixed Assets + Net Working Capital)

Interpretation: The higher the return, the better the profit performance for the company.

« Back to Dictionary Index