Productivity
and Knowledge Contribution = net income - normal return
on investment
This
ratio shows the amount of net income that comes from
employees (versus capital).
In a
competitive environment, margins and profits will be
forced to yield normal returns for shareholders. This
ratio indicates the contribution of the company being
run better or smarter than normal.
The productivity and knowledge contribution is included in
the financial statement ratio analysis spreadsheets
highlighted in the left column, which provide
formulas, definitions, calculation, charts and
explanations of each ratio.
The productivity and knowledge contribution is listed
in our discretionary
cost ratios.
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios are calculated
and explained in our spreadsheets.
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