Return on assets is an index to measure the net profit created by unit assets. A useful indicator to evaluate a company's profitability relative to its total asset value. The calculation method is that the company's annual profit is divided by the total asset value, and the return on assets is generally expressed as a percentage.
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The balanced scorecard method breaks the traditional performance management method that only focuses on financial indicators. The balanced scorecard holds that the traditional financial accounting model can only measure what happened in the past, but can't evaluate the forward-looking investment of the organization. In the industrial age, the management method centered on financial indicators is still effective.
However, in the information society, the traditional performance management method is not comprehensive, and organizations must obtain the motivation of sustainable development by investing in customers, suppliers, employees, organizational processes, technology and innovation. Based on this understanding, the balanced scorecard method thinks that organizations should examine their performance from four angles: learning and growth, business process, customers and finance.