Hi ! I'm analyzing the ROA and ROE of a company for two consecutive years:

- Concerning the ROA:

The Sales Efficiency (Sales/Assets) results in 0.45 that means each dollar asset generates 45 cents of sales, in 2013 it decreased by 4%:

• Sales increased insignificantly by 0.2%,
• Total assets employed increased by 4.5%,

It is mainly driven by the asset turnover. What i could interpret more or search on the Balance Sheet ?

The Operating Efficiency (NOPAT/Sales) results in 0.31 and in 2013 it increased significantly by 9%:

• NOPAT is the companys income from operations excluding interest and adding tax expense, the NOPAT in 2013 increased by 9%,
• Sales increased insignificantly by 0.2%,

It is mainly driven by an effective operating expenses control management. And for example a line of expenses such as "Acquisition related and other"decreased a lot between the two years, what is generally "Acquisition related and other" ? and what could be some interpretations of the reduction of this expense ?

Waiting your reply

Thanks