Quick Definition
Determines a company's ability to profitably use is assets.
Management Rate of Return Formula
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Management Rate of Return
Explanation of Management Rate of Return
The Management Rate of Return measures how well the company is utilizing its assets to generate a profit.
Importance of Management Rate of Return
An increasing Management Rate of Return is a positive sign, showing the company is making effective use of the assets it has acquired. This ratio is also very useful measured over several periods if each individual value that makes up the Management Rate of Return is watched closely