###### Asked in Investing and Financial MarketsBusiness Accounting and BookkeepingFinancial Statements

Investing and Financial Markets

Business Accounting and Bookkeeping

Financial Statements

# Is 0.40 to 1 a better return on net assets ratio than 0.45 to 1?

## Answer

###### Wiki User

###### November 15, 2007 8:21AM

RONA is Net Income divided by Fixed Assets + Net Working Capital. Thus, higher the ratio, higher is the return on net assets. So the anwer to your questions is NO. 0.40 to 1 is not a better return on net assets ratio than 0.45 to 1.

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