If you were general manager of a division, on which three key ratios would you choose tohave your unit's financial performance evaluated?

As a general manager of a division, there are multiple key ratios that you can choose to evaluate your unit's financial performance. However, below are three commonly used ratios that provide valuable insights into the division's performance:

1. Profitability Ratio: This ratio measures the division's ability to generate profits in relation to various financial factors. The most common profitability ratios include gross profit margin, operating profit margin, and net profit margin. To calculate these ratios, you would need to divide the relevant profit figure by the corresponding revenue figure.

2. Asset Efficiency Ratio: This ratio assesses how effectively the division is utilizing its assets to generate revenue. Key asset efficiency ratios include inventory turnover, accounts receivable turnover, and total asset turnover. To calculate these ratios, you would divide the revenue figure by the corresponding asset figure.

3. Return on Investment (ROI): ROI measures the division's ability to generate returns relative to its invested capital. It indicates the profitability of the division's investments and is used to compare the performance of different divisions. ROI is calculated by dividing the division's net profit by its total invested capital.

To evaluate your unit's financial performance using these ratios, you would need to gather relevant financial data from your division's financial statements. This information can be obtained from the division's accounting department or financial system. By carefully analyzing and comparing these ratios over time, you can assess the division's financial health, profitability, efficiency, and return on investment.