Rona

NickyW
NickyW Registered Posts: 97 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Can anyone tell me if RONA is examinable for DFS. If it is can anyone tell me what it means and how you calculate it - cos it isn't in my text book!!
Thanks
Nicky

Comments

  • Bella3214
    Bella3214 Registered Posts: 3 New contributor 🐸
    I'm not sure if it is examinable but if it is the ratio is:

    Operating Profit / Net Assets

    Hope this helps
  • CelticStar
    CelticStar Registered Posts: 142 Dedicated contributor 🦉
    Thanks for your help but is it a percentage? I use the Osbourne books as well and it isn't in there.
  • Bella3214
    Bella3214 Registered Posts: 3 New contributor 🐸
    Return on Net Assets (RONA) Shows how well the compay utilises its net assets to generate Profit

    Sorry forgot to say x 100%

    Operating Profit or PBIT / Net Assets x100%
  • CelticStar
    CelticStar Registered Posts: 142 Dedicated contributor 🦉
    Thanks Bella, that's really helpful. :001_smile:

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