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:
ROA=Net IncomeAssets\text{ROA} = \frac{\text{Net Income}}{\text{Assets}}ROA=AssetsNet Income
* Supplier D: ROA = 50 / 20 = 2.5
* Supplier A: ROA = 100 / 10 = 10
* Supplier C: ROA = 200 / 400 = 0.5
* Supplier B: ROA = 200 / 100 = 2
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.