Return on Net Worth (RoNW) denotes the profit earning capacity of the company on the shareholder's invested amount.
A Return on Net Worth (RONW) is a formula used to calculate a company's profitability, represented as a percentage. Return on Net Worth (RoNW) denotes the profit-earning capacity of the company on the shareholder's invested amount.
RONW is a measure to determine the returns that shareholders get from their investments.
Learn more about RONW, visit Key Performance Indicator.
The formula for Return on Net Worth (RoNW) is:
| RoNW = | Net Income | × 100 |
| Shareholders' Equity |
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