What does RONW stand for?

Return on net worth

RONW is a business term that’s often used in the finance world. It stands for a method that’s used to find out how profitable a company is. This is done by looking at the profit it makes from the money its shareholders have put in.

This method involves doing a little bit of math. You take the company’s net income and divide it by the shareholders’ equity. The result gives you the RONW.

It’s important to note that RONW is the same as another term you might come across – ROE. So, if you’ve heard of ROE before, know that RONW is just another name for the same thing.

Example for using ‘RONW’ in a conversation

Hey, have you ever heard of RONW? πŸ€”

No, what does it mean? πŸ€·β€β™€οΈ

It stands for Return on Net Worth. It’s a way to measure a company’s profitability by looking at the profit generated from money invested by shareholders. It’s calculated by dividing net income by shareholder’s equity. It’s the same as ROE. 😊

Oh, I see! So it helps determine how well a company is doing financially. That’s interesting! πŸ“ˆ