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.
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).