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Return on Net Assets = Net profit ÷ (Fixed assets + Net working capital)
Ms. Lisa has net income of $2,000,000, with extraordinary expense of $500,000. She also has fixed assets of $4,000,000 and net working capital of $1,000,000. After eliminating the extraordinary expenses, the net income figure is $2,500,000. Therefore, Return on Net Assets is-
$2,500,000 Net income ÷ ($4,000,000 Fixed assets + $1,000,000 Net working capital)
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