Performance Measurement

The Corporation's performance metrics highlights three significances for raising shareholder value: returns, leverage, and growth. The Corporation's main concern of growth concentrate on sales through similar companies or club sales and unit square feet growth; the importance of leverage incorporates the Corporation's objective to raise its operating income quicker than the growth rate in net sales by increasing its administrative expenses, selling, and operating expenses, at a measured rate than the progression of its net sales; and the importance of returns emphasizes on how proficient the Corporation engage its assets through return on investment also, how efficiently the Corporation achieves working capital and capital expenditures through free cash flow. (See Figure

Return on assets is an efficiency ratio. It compares the profits generated with the asset base required. It answers the question, how hard

* Return on assets (ROA) – ROA shows how successful a company is in generating profits on the amount of assets they own. Since assets consist of debt and equity, ROA is a measure of how well a company converts investment dollars into profit. The higher the percentage, the more profit a company is generating per dollar of investment. Similar to ROS, this ratio needs to be looked at compared to the industry as different industries have different requirements that can affect ROA. For example, companies in the airline and mining industries need expensive assets to operate so will have lower ROA’s compared to companies in the pharmaceutical or advertising industries.

Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy

Return on Assets shows the Company’s ability to generate a profit based on assets and equity. In 2009, the Company’s profit margin was 3.07% and in 2011 it had fallen to 1.91%.

A review of a company’s profitability lets investors or managers know how efficiently a company is operating. There are three key ratios to review. The profit margin, return on equity and return on assets. The profit margin is the net income divided by sales. The higher the profit margins the better. The return on equity is net income divided by total equity (Cornett, Adair & Nofsinger, 2009).. This can help to determine the amount of financial leverage the company is using. The return on assets is the net income divided by total assets. This can also help determine the financial leverage the company is using in regards to its assets (Cornett, Adair & Nofsinger,

Robb Osinski and Bob Winskowicz had been friends for twelve years and business partners for five. In the middle of 2002, they felt that they were on the verge of a breakthrough in the commercialization of a new technology that their firm, Performance Indicator, LLC, had developed to let golfers know when a used golf ball had suffered performance degradation due to immersion in water hazards like ponds and creeks on golf courses. Specifically, they held patents on technology that would change the color or appearance of balls when they had been submerged in water for an extended period of time. Osinski and Winskowicz originally believed that selling the idea would be

Chip your overall performance as always is exceptional in all areas, but one. Continue doing your best each and every day as you always do. Over time your handle time will come down as we listen to calls together where you can see what areas you can reduce your calls by a few seconds which will add up to minutes in turn bringing your handle time into goal. I am so very proud of you! The hard work and dedication you put into your work never goes unseen by me, the others supervisor, or Payne.

To do this we had to calculate the reinvestment rate w/o synergies and the return on capital (RoC).

Historically, the Du Pont innovation of (ROI) calculations represents one of the most significant turning points in the history of modern accounting and management, (Hounshell, 1998 ). The 1920’s began the Du Pont system company with methods and calculations from leaders, owners, executives, etc. Furthermore, it was the beginning of the integration of financial accounting, capital accounting, and cost accounting. When it comes to return on assets (ROA), they are a (ROI) measure that evaluates the organization’s return or net income relative to the asset base need to generate the income, (Finkler, Ward, & Calabrese, 2013). The Du Pont Company has been the leader of industrial research. Throughout the years with companies emerging, Du Pont’s method was becoming more prominent with owners and executives needing a method for

The return on equity conveys the profits of the company as a rate of return on the amount of owners' equity. ROE uses average owners equity over the specified time period and net income. Historically a ROE of between 10% and 15% were considered average. Recently higher rates in growth industries have been greater.

Apple has managed to establish a stable business for the past 10 years. Their profitability has managed to succeed expectations and stockholders equity has managed to increase continually since 2011. Since Apple’s stockholder equity is steadily increasing, it is safe to say that they are continually turning a profit. When subtracting liabilities from Apple’s assets, Apple has managed to cover their liabilities and retain earnings. The accumulation of retained earnings has allowed the stockholder equity to increase.

Throughout history, PMS clearly have a considerable contribution to evaluate the success of organisations. According to Neely et al. (2002), performance measurement is "the process of quantifying the efficiency and effectiveness of past actions". Moullin (2003) indicates that "PM is evaluating how well organisations are managed and the value they deliver for customers and other stakeholders". The modern accounting framework can be traced back to the Middle Ages and since that time appraisal of performance has primarily been ground on financial criteria (Bruns, 1998).

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. ROA is net income divided by average assets and indicates how efficiently you are using the assets at your disposal. Your assets include current items such as cash and inventory, as well as long-lived items such as equipment, machinery, buildings and warehouses. Average assets are one-half the sum of beginning and ending assets for the period. The higher the ratio, the better you are at “milking” your assets to extract their maximum value.

Company establishes key performance indicators for evaluation system. The actual performance of marketing activities is comparing the set objectives. The key performance indicators are:-