Whole-Hog Asset Management

摘要

If you're a typical electrical contractor, you've probably accumulated fixed assets as the business grew. Calculating ROA, or Return On Assets, will make you aware of just how fixed asset-heavy your company has become. Divide net profit by total assets and compare the percentage to the 2002 NECA Financial Performance Report. Collectively, all firms reported 6.58 percent, but the high profit group showed an ROA of 14.94 percent. Targeting 8 to 12 percent should give you a reasonable goal.