What is the difference between ROE and RNOA?

ROE stands for Return on Equity, and RNOA means Return on Net Operating Asset. In order to compute these two, there are different formulas that you can use. For ROE, it is the net income after taxes divided by shareholder equity.
For RNOA, you would base it on the net income divided by the total assets that are available. Another difference between the two is when these should be computed. The ROE is usually computed after the taxes have already been fixed while the RNOA is computed before taxes will be computed. For people who need to know if a company is in a good place, they need to check out the ROE over the RNOA.