RON, or "Return on Net," is a financial metric used to evaluate the profitability of a company. It measures the efficiency of a business in generating profit from its net assets. A higher RON indicates better performance, as it shows that the company is effectively utilizing its resources to create earnings. This metric is particularly useful for investors and analysts when comparing companies within the same industry. By assessing RON alongside other financial indicators, such as Return on Investment (ROI) and Return on Equity (ROE), stakeholders can gain a clearer picture of a company's financial health and operational efficiency.