What is 'Return On Net Assets  RONA'
Return on net assets (RONA) is 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.
BREAKING DOWN 'Return On Net Assets  RONA'
If the purpose of performing the calculation is to generate a longerterm 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.

Net Tangible Assets
Calculated as the total assets of a company, minus any intangible ... 
Return
The gain or loss of a security in a particular period. The return ... 
Tangible Net Worth
A measure of the physical worth of a company, which does not ... 
Return On Assets Managed  ROAM
A measure of profits shown as a percentage of the capital that ... 
Net Income  NI
1. A company's total earnings (or profit). Net income is calculated ... 
Book Value
1. The value at which an asset is carried on a balance sheet. ...

Fundamental Analysis
Calculating Return on Net Assets
Return on net assets measures a companyâ€™s financial performance. 
Investing Basics
Explaining Net Tangible Assets
Net tangible assets is a companyâ€™s total assets subtracting both intangible assets (such as goodwill and intellectual property) and total liabilities. 
Entrepreneurship
How to Calculate Your Tangible Net Worth
Your net worth can be calculated with a simple equation. 
Investing Basics
Profit Metrics: Gross, Operating & Net Profits
In addition to net profit, most analysts look at a companyâ€™s gross profit and operating profit to gauge performance. 
Personal Finance
The Complete Guide To Calculating Your Net Worth
Here's everything you need to know about calculating your net worth. 
Personal Finance
The Complete Guide To Calculating Your Net Worth: Calculating Your Net Worth
Calculating your net worth involves subtracting your liabilities from your assets. If you have more assets than liabilities, you have a positive net worth. Conversely, if you have more liabilities ... 
Economics
Explaining Tangible Net Worth
Tangible net worth is determined by taking total assets, then subtracting liabilities and intangible assets. 
Economics
Is Net Income The Same As Profit?
Net income and profit both deal with positive cash flow, but there are important differences between the two concepts. 
Personal Finance
The Complete Guide To Calculating Your Net Worth: Introduction
Net worth is the amount by which assets exceed liabilities. In other words, your net worth is the difference between what you own and what you owe. Calculating your net worth can be a useful ... 
Personal Finance
What is Net Worth?
Net worth is the amount by which assets exceed liabilities. Another way to say this is, it's the value of everything you own, minus all your debts.

Why is the amount of net tangible assets an important benchmark?
Find out more about net tangible assets, how to calculate net tangible assets and the importance of net tangible assets and ... Read Answer >> 
What are the differences between personal and business tangible net worth?
Understand what the term tangible net worth represents, its significance, and how the calculation of net worth differs for ... Read Answer >> 
How are net tangible assets calculated?
Learn about net tangible assets, what it measures and how to calculate a company net tangible assets using examples. Read Answer >> 
How do you calculate net current assets in Excel?
Learn how to calculate net current assets, or working capital, in Microsoft Excel and how to evaluate the financial health ... Read Answer >> 
What is the difference between shareholder equity and net tangible assets?
Find out more about shareholders' equity, net tangible assets, how to calculate these balance sheet items and the difference ... Read Answer >> 
How can I find net margin by looking a company's financial statements?
Learn how to calculate a company's net margin using financial statements by dividing the company's net revenues by its net ... Read Answer >>