The return on net assets (RONA) is a measure of financial performance of a company which takes the use of assets into account. Higher RONA means that the company is using its assets and working capital efficiently and effectively. RONA is used by investors to determine how well management is utilizing assets.
Return on net assets = net income / (Fixed assets + working capital)
where Working capital = (current assets minus current liabilities)
In a manufacturing sector, this is also calculated as:
Return on net assets = (plant revenue - costs) / net assets