# 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%

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