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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?

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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.