1.
Operating assets refer to those assets which are acquired by the company to support its ongoing business operations. These are the assets that contribute to generating revenue. For instance, cash, accounts receivable, prepaid expenses, and so on.
:
The average operating assets of the company.
2.
:
The margin, turnover, and return on investment (ROI) for the last year of the company.
3.
Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the number of excess earnings earned over and above the minimum required return of the capital invested.
:
The residual income of last year.
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