Return on Assets (ROA):
Formula: Net Income/ Total assets
This figure shows you how profitable your assets (invested capital) are, and how much revenue brings back into the business.
You could also measure:
Sales to Fixed Assets Ratio:
This indicator measures how many sales $ you make per every $ invested in fixed assets.
Formula :
Sales Value : Fixed assets Value
E.g.
If you make 200 000 of sales for 50 000 of fixed assets value/investment, you get a 4:1 ratio, where you make $4 in sales per every $1 invested in fixed assets.
Hope this helps?
Please post a comment if you need any further help.
I believe that the only real indicator of quality of investment is outcome that you have got. When we talk about investment in non-financial assets this approach won't work as you will need to focus on results produced, not just direct outcome generated.
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