return on net assets

noun

, Accounting.

1. the amount of profit computed by dividing net income before interest and taxes by the cost of net assets, usually expressed as a percentage. : RONA

Example Sentences

Where previous generations of Boeing leaders prided themselves on knowing everything about the aircraft they built — they were deeply engaged in precisely the “how-do-you-design-an-airplane stuff” — its new leaders were judged by their performance in meeting financial metrics: especially “return on net assets,” or RONA, which measures the ratio of net income to capital employed.

From Seattle Times

Disruption was being “driven by the pursuit of profit. That’s the causal mechanism for these things…There is a pernicious methodology for calculating the internal rate of return on an investment. It causes you to focus on smaller and smaller wins… There’s another one: the rate of return on net assets causes you to reduce the denominator—assets—because the fewer the assets, the higher the rate of return on net assets–RONA.”

From Forbes

The Fortum group's distribution businesses have in total yielded a return on net assets of about 8 percent and with total sales of around 1 billion euros contributed some 17 percent of the group's turnover last year.

From Reuters

It uses five-year performance benchmarks and includes return on equity and return on net assets in those calculations.

From New York Times

Because if you ever use your money for something that doesn’t pay off for years, the IRR is so crummy that people who focus on IRR focus their capital on shorter and shorter term wins.There’s another one called RONA—rate of return on net assets.

From Forbes