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To view this page ensure that Adobe Flash Player version 9.0.124 or greater is installed. Asset Efficiency The sales-to-asset ratio is known as asset turnover. Asset turnover indicates how efficiently a company’s assets are utilized by measuring the revenue generated per dollar of assets. While this measure can vary by industry, as a general concept companies with high profit margins tend to have low asset turnover, i.e., create the same or higher income level without a large investment in additional assets. Calculation: Asset Turnover = Revenue / Average Total Assets As shown in Figure 12, the average asset turnover for SME business aviation users was 21 percent higher than nonusers (1.21 to 1.00). Return on Assets (ROA) An asset base can also be measured in its ability to produce “bottom line” earnings. The financial performance of a company can be measured by the ratio of income to total assets. Calculation: Return on Assets = Net Income / Average Total Assets As shown in Figure 13, the return on asset for business aviation users was a remarkable 70 percent higher than nonusers (1.70 to 1.00). How can SME users of business aviation post such dramatic results? As mentioned earlier, certain intangible assets that can be highly leveraged through business aircraft use are not reflected on balance sheets. These include knowledge and expertise, innovative thinking, transaction acceleration, customer relationships, goodwill, and teamwork. Improved customer and employee satisfaction were also cited as intangible assets leveraged by business aviation usage. Sensitivity Analysis: Raw vs. Weighted We recognize that all companies are unique and face different competitive challenges depending on factors such as sector economics, geographic location, size, or relative market position. In addition to the raw “unweighted” analysis, we wanted to understand whether company size would significantly alter the results and the conclusions that we drew for our sample. Specifically, we wanted to answer the question: “Would the results of our analysis change materially if we weighted them according to company size?” 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(16) |
