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Return On Net Assets

Return On Net Assets Definition

Is a financial calculation used to describe a company’s financial performance, which takes the use of assets into account.

It is measured by how much money a company has made divided by the company’s assets. Calculated as:

Return on net assets = Net Income  / ( Fixed assets + Net working capital )

In a manufacturing sector this is also calculated as:

Return on net assets = (plant revenue - costs) / net assets







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