Is management generating a substantial profit on the company’s assets?

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In order to determine if management is generating a substantial profit on the company’s assets, one must analyze the actual financial results of their operations and compare it to industry standards. This entails examining the ratio between total revenue generated versus total expenses incurred in terms of operating costs, labor costs, overhead costs and capital investments. If this comparison shows that these expenses are significantly lower than what would be expected for companies in similar industries or with equivalent market sizes then there might be evidence to suggest management is optimizing profits off of company’s resources and return-on-investment may be higher than anticipated.