Firm Performance as a Compelling Measure of Growth: Whole Foods Case Study

2765 Words Jan 28th, 2018 11 Pages
It is in this pursuit for success that most firms are seeking the service off establishing and determining the performance of the firms. Measuring firm performance has several means of doing, however, the most commonly used one is the Return on Assets (Rumelt, 2011). Return on assets is a measurement methodology that assesses various factors and matrices in the line of action. However, most firms focus on the financial side of the venture, diverting their attention from the most compelling basis of the metric method. Return on assets is a tool that requires a critical and careful selection of the base criteria for measuring the success of the firm or company. However, focusing on the financial side only leaves the investors happy but the firm stagnating.
Return on assets is the best measurement of the performance of a firm. It focuses on and takes into account the aspect of the assets used in supporting the business. It focuses on determining whether the firm can generate a return on assets sale rather than presenting a robust return on sales. Firms with many and robust assets need a high level of the net income. However, it is notable that analyzing these asset heavy firms indicates that they return significantly healthy returns of money (Rumelt, 2011). Also, notable is that, a…

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