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What does Rona stand for in finance?
Return on Net Assets – RONA Definition. Reviewed by Will Kenton. Updated Jul 13, 2019. Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income.
What is the history of Rona?
Rona was founded in 1939. Rona operates a network of over 800 stores and is the leading distributor and retailer in its market with more than 28 000 employees. The Rona network represents annual retail sales of almost $6.0 billion.
Is Rona a franchisee?
Founded in 1939, the company operates a mixture of company-owned and franchised retailers under multiple banners, including Rona, its big box formats Rona Home & Garden (Rona L’Entrepôt in Quebec) and Réno-Dépôt, as well as smaller brands such as Rona Cashway, Marcil Centre de Rénovation, Moffatt & Powell and Dick's Lumber.
What is return on net assets (RONA)?
Return on net assets (RONA) compares a firm's net profits to its net assets to show how well it utilizes those assets to generate earnings. A high RONA ratio indicates that management is maximizing the use of the company's assets. Net income and fixed assets can be adjusted for unusual or non-recurring items to gain a normalized ratio result.
What is RONA in accounting?
What is RONA in manufacturing?
What is RONA ratio?
What are the components of RONA?
What Is Return on Net Assets (RONA)?
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Return on Net Assets (RONA) - Definition, Formula, and Example
The return on net assets (RONA) ratio, a measure of financial performance, is an alternative metric to the traditional return on assets ratio. RONA measures how well a company’s fixed assets and net working capital perform in terms of generating net income. Return on net assets is commonly used for capital-intensive companies
Return on Assets (ROA): Formula and 'Good' ROA Defined - Investopedia
Return on Assets - ROA: Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a ...
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What is RONA in accounting?
Return on net assets (RONA) compares a firm's net profits to its net assets to show how well it utilizes those assets to generate earnings.
What is RONA in manufacturing?
RONA is an especially important metric for capital intensive companies, which have fixed assets as their major asset component. In the capital-intensive manufacturing sector, RONA can also be calculated as:
What is RONA ratio?
Net profit is also called net income . The RONA ratio shows how well a company and its management are deploying assets in economically valuable ways; a high ratio result indicates that management is squeezing more earnings out of each dollar invested in assets.
What are the components of RONA?
The three components of RONA are net income, fixed assets, and net working capital. Net income is found in the income statement and is calculated as revenue minus expenses associated with making or selling the company's products, operating expenses such as management salaries and utilities, interest expenses associated with debt, and all other expenses.
What Is Return on Net Assets (RONA)?
Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income .
Where is Rona from?
Rona, of Dunbar, East Lothian, worried she might never fulfill her dream of being able to hold her first grandchild. Having a gran time after beating cancer. A social activist who promoted the education and advancement of youth in Israel, Rona subsequently founded the Ramon Foundation, which "aims to ignite the three essential values which Ilan ...
Who is Rona Macmillan?
Rona Macmillan, aged 23, is one of a group of Scottish-based creatives who are willing to share their interest with online followers. Rona, of Dunbar, East Lothian, worried she might never fulfill her dream of being able to hold her first grandchild. A social activist who promoted the education and advancement of youth in Israel, ...
How old was Rona Grimmer when she joined the police?
RONA Grimmer was 17 when she signed up as a police cadet in Aberdeen in 1978. WE'VE COME A LONG WAYFROMWHENI JOINED THE FORCE.. ONE GUY WOULDN'T SPEAK TO WOMEN..
What is RONA in accounting?
Return on net assets (RONA) compares a firm's net profits to its net assets to show how well it utilizes those assets to generate earnings.
What is RONA in manufacturing?
RONA is an especially important metric for capital intensive companies, which have fixed assets as their major asset component. In the capital-intensive manufacturing sector, RONA can also be calculated as:
What is RONA ratio?
Net profit is also called net income . The RONA ratio shows how well a company and its management are deploying assets in economically valuable ways; a high ratio result indicates that management is squeezing more earnings out of each dollar invested in assets.
What are the components of RONA?
The three components of RONA are net income, fixed assets, and net working capital. Net income is found in the income statement and is calculated as revenue minus expenses associated with making or selling the company's products, operating expenses such as management salaries and utilities, interest expenses associated with debt, and all other expenses.
What Is Return on Net Assets (RONA)?
Return on net assets (RONA) is a measure of financial performance calculated as net profit divided by the sum of fixed assets and net working capital. Net profit is also called net income .
What Is Return on Net Assets (RON?
- Return on net assets (RONA) is a measure of financial performance calculated as net profit divid…
The RONA ratio shows how well a company and its management are deploying assets in economically valuable ways; a high ratio result indicates that management is squeezing more earnings out of each dollar invested in assets. RONA is also used to assess how well a compan… - Return on net assets (RONA) compares a firm's net profits to its net assets to show how well it u…
A high RONA ratio indicates that management is maximizing the use of the company's assets.
The Formula for Return on Net Assets Is
- \begin {aligned}&RONA=\frac {\text {Net profit}} {\text { (Fixed assets}+NWC)}\\&NWC=\text {Current Assets }-\text {Current Liabilities}\\&\textbf {where:}\\&RONA=\text {Return on net assets}\\&NWC=\text {Net working capital}\end {aligned} RON A = (Fixed assets + N W C)Net profit N W C = Current Assets − Current Liabilities where: RON A = Return on net assets N W C = …
How to Calculate RONA
- The three components of RONA are net income, fixed assets, and net working capital. Net incom…
Fixed assets are tangible property used in production, such as real estate and machinery, and do not include goodwill or other intangible assets carried on the balance sheet. Net working capital is calculated by subtracting the company's current liabilities from its current assets. It is importan…
What Does RONA Tell You?
- The return on net assets (RONA) ratio compares a firm's net income with its assets and helps in…
In the capital-intensive manufacturing sector, RONA can also be calculated as: - \text {Return on Net Assets}=\frac {\text {Plant Revenue}-\text {Costs}} {\text {Net Assets}} Retu…
Interpreting Return on Net Assets
Example of RONA
- Assume a company has revenue of $1 billion and total expenses including taxes of $800 million…
Further, the company's fixed assets amount to $800 million. Adding fixed assets to net working capital yields $1 billion in the denominator when calculating RONA. Dividing the net income of $200 million by $1 billion yields a return on net assets of 20% for the company.