Return on Net Assets (RONA) definition

Return on Net Assets (RONA) means the net operating profit after tax or NOPAT (defined as net income plus after-tax interest expense and imputed interest) divided by average net assets (defined as shareholders' equity, plus interest bearing debt, plus net present value of operating leases, which will be averaged on a quarterly basis). Average net assets will be calculated excluding any "goodwill" from acquisitions that occurred prior to January 1, 2003, impact of pension liability change within equity on the balance sheet, and currency translation adjustment within equity on the balance sheet.
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Examples of Return on Net Assets (RONA) in a sentence

  • Performance vesting shall be based on achievement against pre-determined targets for Free Cash Flow per Share, Return on Net Assets (RONA) and Top-Line Revenue, all of which will be measured by three-year compound annual growth rate (CAGR) and may be adjusted to exclude the impact of changes in accounting principles during the performance period.

  • Performance vesting shall be based on achievement against pre-determined targets for Free Cash Flow per Share, Return on Net Assets (RONA) and Top-Line Revenue, all of which will be measured by three-year compound annual growth rate (CAGR).

Related to Return on Net Assets (RONA)

  • Return on Invested Capital for a period shall mean earnings before interest, taxes, depreciation and amortization divided by the difference of total assets less non-interest bearing current liabilities.

  • Return on Equity means the percentage equal to the Company’s Net Income divided by average stockholder’s equity, determined in accordance with generally accepted accounting principles.

  • Return on Assets means the percentage equal to the Company’s or a business unit’s Operating Income before incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles.

  • Return on Sales means the percentage equal to the Company’s or a business unit’s Operating Income before incentive compensation, divided by the Company’s or the business unit’s, as applicable, revenue, determined in accordance with generally accepted accounting principles.

  • Operating Income means the Company’s or a business unit’s income from operations but excluding any unusual items, determined in accordance with generally accepted accounting principles.