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Operating Profit
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| Management Rate of Return =
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Net Property, Plant, Equipment + Total
Current Assets - Total Current Liabilities
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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.
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