RONOA

AcronymDefinition
RONOAReturn on Net Operating Assets
RONOAReturn on Non Operational Assets (less common)
References in periodicals archive ?
The next step in the research process was to run ANOVA statistics on those retail firms in the relative high OPM and low AT category (differentiation strategy) and those in the relative high AT and low OPM category (cost leadership strategy) to test if there was a statistically significant difference in the RONOA performance of the two different categories.
The data presented below reveal nine categories of relative OPM and relative AT performance measures for the 50 retail firms with the highest relative RONOA and the 50 retail firms with the lowest relative RONOA.
Interestingly, of the 23 retail firms in the differentiation strategy category (high OPM and low AT), 21 of the firms are in the high relative RONOA category and only two firms are in the low category.
The 31 retail firms in the differentiation strategy category (high OPM and low AT) and 27 retail firms in the cost leadership strategy category (high AT and low OPM) were used in one way ANOVA models to test if there is a statistically significant difference in the RONOA performance of the two different strategy categories and to test for any statistically significant firm size difference between the two categories.
The results of the ANOVA shown below indicate a statistically significant difference in the mean values for RONOA in the two strategy categories.
The mean values for RONOA for the 31 firms in the differentiation strategy category are much higher that the values for the 27 firms in the cost leadership category and the differences are statistically significant.
Only those firms with a relatively high level of OPM were able to generate high levels of RONOA.