Return on net assets


The return on net assets is a measure of financial performance of a company which takes the use of assets into account. Higher RONA means that the company is using its assets and working capital efficiently and effectively. RONA is used by investors to determine how well management is utilizing assets.

Basic formulae

Return on net assets = net income /

where Working capital =
In a manufacturing sector, this is also calculated as:

Return on net assets = / net assets