# How To Calculate Core RNOA?

Short tutorial on how to calculate core RNOA (Core Return on Net Operating Assets) with simple calculation procedure.

## Core Return On Net Operating Assets Calculation

In Finance, RNOA stands for Return on Net Operating Assets. RNOA is used in financial statement of an organization to determine the return on the company's assets that are generating revenue. The value is always expressed in terms of percentage. It is a good indicator to know how well a company uses its operating assets to generate revenue. In this short tutorial, let us discuss on how to calculate core RNOA, the formula used with a simple calculation procedure. Formula:

Return on Net Operating Assets (RNOA) = (Net Operating Profit After Taxes (NOPAT) / Average Net Operating Assets (NOA)
) x 100 Core Return On Net Operating Assets Calculation:
Consider an example, where the company's net operating profit after taxes is 55 and a the average net operating assets is 500. Calculate core RNOA.
Step 1: Given,
Net Operating Profit After Taxes (NOPAT) = 55
Average Net Operating Assets (NOA) = 500 Step 2:
Applying the values in the formula,
Return on Net Operating Assets (RNOA) = (Net Operating Profit After Taxes (NOPAT) / Average Net Operating Assets (NOA)) x 100
Return on Net Operating Assets (RNOA) = (55 / 500) x 100
Return on Net Operating Assets (RNOA) = 0.11 x 100
Return on Net Operating Assets (RNOA) = 11% 