The formula: "Return" here is usually net income; it goes into the numerator. Then in the denominator? Rhymes with shmet shmassets.
So what are "net" assets? Like...we know what assets are. Assets minus liabilities? Remember ALE? That. So shareholder's equity is the denominator, a.k.a. "net assets" here, and we're good.
RONA. Sound familiar? Yeah, it's the name of your old secretary. Good memory.
Related or Semi-related Video
Finance: What is Relative Return?10 Views
Up Next
What are Time-Weighted Rate Of Return and Present Value? The Time Weighted Rate of Return is a calculation for the compounded growth rate within an...
What is real return? Real return is the actual return made from an investment after inflation is factored in. Return is expressed as a percentage c...