Return on Assets
Follow this video to understand and utilize the Return on Assets widget on the main page of CFO Scoreboard:
Return on Assets Drop-Down
The "Show Return As" setting allows you get better optics on your business' Return on Assets.
Typically, when MBAs use the term "return on assets", what they mean is how many “dollars” of assets were required to generate a “dollar’s” worth of profits. "Return" in this context means "Profit" and "Assets" means the monetary value of the assets on your balance sheet.
But we can elevate this analysis beyond what MBA’s typically measure to get additional optics and strategies to help create a sustainably successful business. Profit is just a theory - you can't spend profits, you can only spend cash. So in CFO Scoreboard, we give you the option to ask the question "How many “dollars” of assets were required to generate a “dollar’s” worth of Operating Cash Flow?" To get these optics, just set the drop-down list to "Show Return as OCF", and now the entire Return on Assets section will be showing Operating Cash Flow or “OCF” Return rather than Profit Return.