Return On Net Assets (RONA)

Formal

A simple percentage comparison between the profits generated by a business and the net assets (all assets minus all liabilities) used or utilised to generate that profit. E.g. I have £1 Million net assets in a business and make £100,000 profits per annum = 10% Return On Net Assets.

Real-world Example

A company earns $450k in profit against $3M in net assets (fixed assets plus working capital) - a RONA of 15%, similar to ROCE but focused specifically on the assets actually employed in the business.