Operating Efficiency Operating efficiency is the productivity achieved by management in employing the resources of the firm. The primary measures are: return on assets, retum on sales, and asset turnover. These ratios will be analyzed according to both their efficiency trend and comparison to industry average efficiency. The first ratio that will be discussed is return on assets. Return on Assets (ROA) This shows the overall efficiency of management in generating eamings given the total amount of assets in the company: earnings per $1.00 in assets. Thus, this is a very broad measure of the operating efficiency of management. Large (positive) values are preferred. (Also known as 'ROA' and often misnamed Return on Investment 'ROI). ROA (EBIAT) 16.0% 14.0% 12.0% 10.0% 7.5% 8.0% 4.5% 6.0% 3.1% 4.0% 2.0% 14.3% 1 4.4% 0.0% 2018 2019 Plan Industry Cost of Cap.