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To view this page ensure that Adobe Flash Player version 9.0.124 or greater is installed. We learned through our survey that the use of business aviation allowed companies to do more with scarce intangible assets. Participants in our survey said they would have needed more offices and additional resources to achieve the same top line growth, with less profitability, if they did not use business aviation. How important is management productivity to profitability? Survey participants with multiple business locations said that using business aircraft leveraged management time and allowed them to achieve equivalent results through greater productivity of key managers. In other instances, we learned that the best productivity specialists could also oversee a much larger footprint. Supply chain improvements were also cited by some SMEs. We found that impacts were widespread and varied, but generally improved profitability by reducing turn times and delivery costs through less breakage and keeping inventory levels down. According to survey participants, business aviation further improved new vendor selection, and rapid response meetings with existing vendors helped to quickly solve production problems. Overall, a streamlined supply chain contributed to the profitability of the companies we reviewed. Asset Utilization and Return on Assets The final group of financial metrics involved a company’s productive and efficient use of its balance sheet assets to increase both sales and profitability. Asset efficiency (the ratio of sales to average total assets) measures how well a company’s assets are performing. Stated another way, asset efficiency indicates how well a company uses its assets to generate a given level of revenue and profitability. Companies with low profit margins tend to have high asset turnover; that is, reinvestment in new or replacement assets to create the same income level. We analyzed improvements in the asset efficiency metric to measure how successful companies were in increasing productivity of assets. The more sales generated from a given investment in assets, the more efficient those assets became. Since the assets are likely to change over the year, our analysis used the average of assets at the beginning and end of each year. 中国公务机网 www.gongwuji.com 公务机翻译 www.aviation.cn 本文链接地址：BUSINESS AVIATION AN ENTERPRISE VALUE PERSPECTIVE 2005 - 2010(15) |
