After the analysis, the owner decides what to do next : update the facility or abandon it altogether. For example, if a workshop with outdated equipment at a weaving factory slows down the company's development, because of it the company does not ship goods on time. The owner chooses to purchase new equipment or close the office and rent out the space.
Important: ROA is less than zero. [widget id=8555 type=blog-text-block]
Formula for fixed assets
To calculate ROFA, net profit must be divided chinese malaysia phone number list by the value of fixed assets, then multiplied by one hundred.
Enlarge imagewhat business is considered profitable
Profitability of fixed assets
Fixed assets are the means of labor used during work processes.
These can be:
the building, office, shopping center where the company is located;
equipment used to produce goods;
transport that participates in the work process;
furniture;
computer equipment;
cash register;
other tools.
This value is useful for commercial companies or manufacturing holdings to know. Thanks to it, they understand how much profit is generated per unit of money invested.
