Profitability ratio that calculates the accounting rate of return on net assets, calculated as follows:

((v1700.00) + (v1420.00)) - ((v3220.00) + (v1410.00))

(v2490.00 - v2600.00)

where:

(v1700.00) Income After Taxes

(v1420.00) Total Interest Expense

(v3220.00) Interest Tax Shield

(v1410.00) Interest Capitalized

(v2490.00) Total Assets

(v2660.00) Total Current Liabilities

The exclusion of Total Current Liabilities (v2600) means that RONA (v6020.00) represents the accounting return on longer-term investments.

This ratio has limitations: it is based on historical cost, does not incorporate risk or the time value of money, and can be greatly affected by alternative accounting conventions.