You are a CEO of a company. You are analyzing the performance of your company, as a comparison to your industry/competitors. Your analysis of RNOA
You are a CEO of a company. You are analyzing the performance of your company, as a comparison to your industry/competitors. Your analysis of RNOA (Return on Net Operating Assets) is as follows:
Your RNOA is 16%, but the industry benchmark is 10%.
Your NOPM is 18%, but the industry benchmark is 17%.
Your NOAT is .89, but the industry benchmark is .59.
What interpretations can you draw from the information above that would be useful for managing your company? For example, how do you compare to your competitors? Which measurement is your companies strong point? What area do you have room for the higher level of improvement?
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