The Total Asset Efficiency Analysis Based on the Economic Rate of ReturnAbstract:Asset utilization efficiency is one of the main objectives of the firm's managers who manage the company’s assets and it reflects the value volume obtained in the form of profit from financial investments made in the company's assets. The economic rate of return is one of the most important indicators reflecting the economic efficiency of a company; it has the advantage that it is independent of the financial structure of the firm. The paper aims to highlight the expressing way of the economic efficiency through the economic rate of return, which decomposed into components, namely: the gross profit at 1 leu turnover and the turnover at 1 leu total assets, on the one hand and the total asset effectiveness and the efficiency of the use of current assets, on the other hand, helps to make the most effective measures to maximize the return on assets
Cãruntu Constantin and
Lãpãduºi Mihaela Loredana
Ovidius University Annals, Economic Sciences Series, 2013, vol. XIII, issue 2, 558-563
JEL-codes: D2 (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xiii:y:2013:i:2:p:558-563
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