Cash bonuses are a function of revenue increases, return on assets or return on equity.
FORBES: Are Utility CEO Pay Packages Fair Compared to Average Workers?
Return on assets over the past 12 months is 20.6% and return on equity is 38.4%.
FORBES: Apple Should Plow Cash Back Into Growth, Not Shovel It Out To Shareholders
The average return on assets declined slightly to 1.19% (it was 1.23% in 2009).
Mr Lee says slower growth implies a lower return on assets and thus subdued profits.
When the marginal return on assets begins to approximate the marginal costs of borrowing, says Ken Fisher.
By 2022, says one of the authors, return on assets will hit zero.
Its return on assets (1.5%) and return on equity (13.4%) were each up from the quarter and year prior.
FORBES: Record Quarter For Wells Fargo, Rocky Start For Stock
Something strange happens when you shift the metric from Return on Assets to Return on Equity, or shareholder funds.
FORBES: 3 Megatrends for 2012 - Or Why Shared Value is Indeed an Answer
Corbett scores companies on nine financial measures, including debt as a percentage of assets, profit margins and return on assets.
They earn a scant 0.56% return on assets, compared with 1.15% for Indian private banks and 1.41% for foreign banks.
For the year 2009 its operating margin was at 0.29%, return on assets was 2.91% and return on equity was 8.59%.
Dividend payouts, operating margins, return on assets, return on equity as measured by these traditional profitability metrics, Otellini delivered the goods.
Return on Assets and Return on Equity have steadily declined since 1965.
Traditionally, managers have faced little pressure to improve their return on assets.
The bank has a return on equity rate of 10.4% in fiscal 2011, and a return on assets rate of 0.60% in 2011.
FORBES: Delphi Management's Top Five New Buys: CVS,USB,EAT,LIFE,CNKA
The rate of return on assets of those firms has been steadily declining and is now one-quarter of what it was in 1965.
FORBES: The Good News On The Key Economic Issue of Our Times: Management Innovation
Revenues have also increased each year since 2008, as has net income, return on equity, return on assets, operating margins, and net margins.
This cultural transformation was marked by a change in the growth rate of return on assets from -8.7% to 14.1% over 11 years.
Small problem: According to a fascinating new study from Deloitte, over the last 40 years the return on assets has fallen 75%.
Households with at least one fee-based account generate a return on assets that is 40% -70% higher than households that are purely transactional.
FactSet is also averaging a 25.7% return on equity over the past decade, and a whopping 20.1% return on assets over that period.
However, with respect to return on assets, Acadia Healthcare looks attractive at 3.9%, a marginal premium to the peer group average of 3.5%.
FORBES: Acadia Healthcare Is Gobbling Up Assets And Moving Up The Charts
Harley raised the pension plan's expected return on assets from an already optimistic 10.3% in 1999 to 10.5% in both 2000 and 2001.
In corporate terms, less capital has to produce more things and sell them at lower margins but at a higher return on assets.
For one, the decline appears to be a lot less (smoothed for fluctuations the decline is 50% compared with 25% for return on assets).
FORBES: 3 Megatrends for 2012 - Or Why Shared Value is Indeed an Answer
But, improving intelligence and accessibility by 10 percent earns the insurance vertical top of another top-10 list an impressive 42 percent increase in return on assets.
FORBES: Does Better Data Lead To Better Corporate Performance?
For financials, the Buffett-based approach also looks at the return on assets rate, which must average at least 1% over the past 10 years.
Also, with respect to return on assets (ROA), ResMed looks attractive at 13.7%, a lofty premium compared to the peer group average of 6.7%.
Aramark's return on assets is even more favorable: In its latest fiscal year it was 5.5%, compared with 2.8% for Compass and 1.8% for Sodexho.
Its own financial position is even worse: Their 2009 operating margin stood at 2.83%, the return on assets was 4.89% and return on equity, 17.89%.
应用推荐