A supply manager is conducting financial analysis of bidders. The supply manager wants to select the supplier that is most efficient In the use of its assets. Based on the following information, which supplier should the supply manager choose?
To determine which supplier is most efficient in the use of its assets, we calculate the return on assets (ROA) for each supplier. ROA is calculated as:
Supplier A has the highest ROA at 10, indicating the highest efficiency in using its assets to generate income.
References:
Financial analysis methods in supply chain management.
Return on assets (ROA) calculation and interpretation.
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