Return On Net Assets - RONA
- Return On Net Assets - RONA
A measure of financial performance calculated as:
Fixed assets are tangible property used in production, such as real estate and machinery. Net working capital is calculated by taking the company’s current assets minus its current liabilities. The higher the return, the better the profit performance for the company. Individually, no single calculation tells the whole story of a company’s performance, and Return On Net Assets is just one of many ratios that can be used to evaluate a company’s financial health.
If the purpose of performing the calculation is to generate a longer-term perspective of the company’s ability to create value, extraordinary expenses may be added back into the net income figure. For example, if a company had a net income of $10 million but incurred an extraordinary expense of $1 million, the net income figure could be adjusted upward to $11 million. This adjustment would not accurately reflect the company’s Return On Net Assets in that year, but might provide an indication of the Return On Net Assets the company could expect in the following year if it did not have to incur any further extraordinary expenses.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
return on net assets — Accounting. the amount of profit computed by dividing net income before interest and taxes by the cost of net assets, usually expressed as a percentage. Abbr.: RONA * * * … Universalium
return on net assets — Accounting. the amount of profit computed by dividing net income before interest and taxes by the cost of net assets, usually expressed as a percentage. Abbr.: RONA … Useful english dictionary
Net assets — Net assets, sometimes referred to as net worth, is the shareholders equity = assets minus liabilities. The term net assets is commonly used with charities or not for profit entities a measurement of their ability to reinvest profits toward their… … Wikipedia
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Return on capital — Return on invested capital (ROIC) is a financial measure that quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net operating profit less adjusted taxes divided by Invested … Wikipedia
Rona — NOTOC The term Rona or RONA may refer to:; Places *North Rona, a Scottish island in the North Atlantic *South Rona, a Scottish island in the Inner Hebrides *Rona, Switzerland * Tinizong Rona, Swiss municipality *Rona, Latvia *Rona, a… … Wikipedia
Rona — Diese Seite ist eine Begriffsklärung zur Unterscheidung mehrerer mit demselben Wort bezeichneter Begriffe. Rona bezeichnet: eine Insel der Äußeren Hebriden in Schottland, auch North Rona, siehe North Rona eine Insel der Inneren Hebriden … Deutsch Wikipedia
RONA — Accounting. return on net assets. * * * … Universalium
RONA — abbr. Return on Net Assets http://www.onesixsigma.com … Dictionary of abbreviations
RONA — Accounting. return on net assets … Useful english dictionary
