answersLogoWhite

0

Return on Net Worth (RONW) is calculated by dividing the net profit after tax by the average net worth (equity) of a company, and then multiplying by 100 to express it as a percentage. The formula is: RONW = (Net Profit After Tax / Average Net Worth) × 100. Average net worth is typically calculated by taking the sum of the net worth at the beginning and end of the period and dividing it by two. This metric helps assess how effectively a company is using its equity to generate profits.

User Avatar

AnswerBot

3mo ago

What else can I help you with?

Related Questions

What is return on net worth?

what is Ulta's company return on net worth?


What is the difference between return on equity and return on net worth?

Return on equity is the rate of returns you earned on your equity investments Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)


Return on net operating assets calculation?

How do I calculate the return on operating assets?


How do you calculate the net worth from balance sheet?

Net Worth = Total Assets - Total Liabilities


How do you calculate net purchases?

Purchase Return and Allowance- Discount From purchase = Net Purchase


How do you Calculate Return on Sale?

ROS= NET PROFIT/ SALES


How do you calculate networth?

Net worth = Total Assets - Total liabilities It is the remaining amount which is net worth for owners.


How is 'net worth' a liability?

Net worth is the remaining amount after clearing all assets and liabilities and then net worth is that amount business is liable to return back to it's owner.


How do you calculate rate of return?

by using the Net present value calculations.


Calculate Carla's net worth She has assets worth 25673.29 and an indebtedness of 8672.45?

17000.84


Calculate Carla's net worth. She has assets worth 25673.29 and an indebtedness of 8672.45.?

17000.84


How do you calculate tangible net worth?

Tangible net worth is calculated as follows: Book net worth + Subordinated Debt - Assets/Receivables due from affiliates - Intangible assets = Tangible net worth Lenders use it to estimate how much real value is in a businesses book net worth.