Return on Assets
Return on Assets (ROA) is a crucial financial ratio of how profitable a company is to its overall resources. We help management teams make decisions that properly allocate resources to generate earnings.
Our methodology looks at all assets from a total cost of ownership lens, allowing for disposing, reallocating, repositioning, or acquiring new assets to enable clients to make efficient investments.
We develop and help implement custom Asset Management practices to the entire portfolio of assets at all levels of the organization. By having consistent practices, economies of scale are achieved, minimizing the total acquisition, operating, maintenance, and rebuilding costs, while continuously delivering the service levels customers desire, minimizing disruptions as well as risks to the organization.
asset overlap assessment
Companies grow via acquisitions and organic growth; however, due to lack of resources, due-diligence, or follow up asset overlap is created. As a result, assets and facilities conduct redundant or duplicate activities in sub-optimized facilities.
With our help companies consolidate, eliminate, right-size, relocate assets and facilities, leverage sourcing opportunities, reduce costs, and increase efficiencies all while executing a carefully designed plan. Our plans are developed by taking a look at the total cost of ownership and the total cost to operate models. When developing a plan, we take the following into account: cost of freight, cost of labor, labor pool, distance to customer, distance to suppliers, labor tax incentives, and state and county tax incentives.
Asset Utilization ratio calculates the total revenue earned for every dollar of assets a company owns depicting a company’s efficiency over time. Our analysis helps companies to manage and leverage their assets, find opportunity areas that need optimization, and to become more efficient.
We uncover opportunities by evaluating areas such as asset losses, theft, operational inefficiencies, underutilization, weak capacity planning, and poor maintenance planning. Our objective is to help companies make better use of its existing capacity to increase their profitability, rather than just acquiring additional equipment and incurring additional production costs.
Our approach includes assessing the demand and customer profile by product and service, which then are aligned to available assets. Based on asset capacities and capabilities, an optimized mix of customers, demand, products, and services are developed to illustrate the maximum return on assets and profitability. With our help, the necessary operating processes, protocols, and management systems are developed and implemented to improve utilization, performance, and above all profit.