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Return on Net Assets (RONA)

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Return on Net Assets (RONA) - definition(s)

RONA - Return on Net Assets

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.

[Category=Data Quality ]

Source: iSixSigma, 21 February 2011 07:57:42, https:web.archive.org/web/20111109014246/http:www.isixsigma.com/index.php?option=com_glossary External 


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