Do you know your ROIC and ROA?

As the truism goes, you can't manage what you don't measure.

While the collision industry tends to put a lot of focus on operational metrics, such as cycle time, financial metrics don't always get their time in the limelight.

In a recent blog, Brad Mewes discusses the importance of measuring financial metrics, specfically Return on Invested Capital (ROIC) and Return on Assets (ROA). Mewes explains, "ROA tells us how efficiently a business uses its exisiting assets to generate profits. ROIC tells us how effective a business is in re-investing itself."

Click here to read Mewe's blog on ROA and ROIC and why they are so important to measure.