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Return on Net Assets (RONA)

Calculate RONA for asset efficiency.

Return on Net Assets (RONA) Calculator - Asset Efficiency Analysis

Return on Net Assets (RONA) Calculator

Measure how efficiently a company uses its net assets to generate profits and create shareholder value.

RONA Calculator

Net Income (After taxes)

Total Assets (Balance sheet)

Current Liabilities (Short-term debt)

Non-Interest Bearing Liabilities (Optional)

Enter Net Assets directly

Net Assets (Total Assets - Liabilities)

RONA Results

RONA Percentage

Net Assets

Asset Turnover

Performance Rating

Calculation Breakdown

Net Income:

Total Assets:

Current Liabilities:

Non-Interest Liabilities:

Net Assets:

Key Insights

• Excellent asset efficiency
• Good asset utilization
• Average performance
• Asset efficiency needs improvement
• Assets generate more than their value in income
• Assets generate less than their value in income

Understanding RONA

What is RONA?

Return on Net Assets (RONA) measures how efficiently a company uses its net assets to generate profits. It shows how much profit is generated for each dollar of net assets.

Formula

RONA = Net Income ÷ Net Assets × 100

Where Net Assets = Total Assets - Current Liabilities - Non-Interest Bearing Liabilities

Good RONA Values

• Above 15%: Excellent
• 10-15%: Good
• 5-10%: Average
• Below 5%: Poor

Key Benefits

• Measures asset efficiency
• Compares companies across industries
• Identifies operational improvements
• Evaluates management performance
• Guides investment decisions

Limitations

• Based on book values, not market values
• Can be manipulated by asset sales
• Doesn't consider risk factors
• May not reflect future performance
• Varies by industry and business model

Pro Tips

• Compare RONA with industry averages for better context
• Track RONA trends over multiple periods
• Use alongside other profitability ratios like ROA and ROE
• Consider the company's growth stage when evaluating RONA
• Look for consistency in RONA performance over time

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