RONA (Return on Net Assets)
Return on Net Assets (RONA) is a metric used to measure the effectiveness of a company’s procurement activities. It is calculated by taking the net profits of a business divided by the total assets of the same business. RONA is a valuable tool for gauging the profitability of a business’s purchasing efforts and can be used to identify opportunities for improvement, as well as cost savings. In addition, it allows organizations to compare the performance of different vendors and suppliers. RONA provides excellent insight into a company’s procurement performance and can help inform crucial decisions that impact bottom line profitability.
