Return on Net Operating Assets

Return on Net Operating Assets (RNOA) can be used like Return on Assets. The difference is that Return on Net Operating Assets captures the return on the company's Assets that are generating Revenue. It is a good indicator of how well a company uses operating assets to create profit. Investors are generally more interested in companies with higher RNOA.

Return on Net Operating Assets TTM = Net Income TTM / Average of the past 5 quarterly Operating Assets

Note that since Operating Assets is a balance sheet item, we use the last 5 quarters instead of 4.