Search Investopedia

Asset Performance

Filed Under »
Dictionary Says

Definition of 'Asset Performance'

A business's ability to take productive resources and manage them within its operations to produce subsequent returns. Asset performance is typically used to compare one company's performance over time or against its competition. Possessing strong asset performance is one of the criteria for determining whether a company is considered a good investment.
Investopedia Says

Investopedia explains 'Asset Performance'

Analysts use metrics like the cash conversion cycle, the return on assets ratio and the fixed asset turnover ratio to compare and assess a company's annual asset performance. Typically, an improvement in asset performance means that a company can either earn a higher return using the same amount of assets or is efficient enough to create the same amount of return using less assets.

Related Definitions

  •

    Financial Performance

    A subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm's overall financial ...
    Read More »

  • Cash Conversion Cycle - CCC

    A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. The cash conversion cycle attempts to measure the amount of ...
    Read More »

  • Return On Assets - ROA

    An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by ...
    Read More »

    • Turnover

      1. In accounting, the number of times an asset is replaced during a financial period. 2. The number of shares traded for a period as a percentage of the total shares in a portfolio or of ...
      Read More »

    • Asset

      1. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 2. A balance sheet item ...
      Read More »

    • After-Market Performance

      The price level performance of a newly issued stock after its IPO. There is no standard ending time period that is considered, but after-market performance begins on the first day of ...
      Read More »

    • Cash Return On Assets Ratio

      A ratio used to compare a businesses performance among other industry members. The ratio can be used internally by the company's analysts, or by potential and current investors. The ...
      Read More »

    • Anticipated Holding Period

      The time period for which a limited partnership expects to hold a specific asset. A firm will disclose its anticipated holding period on assets through its prospectus. After the ...
      Read More »

    • J-Curve Effect

      A type of diagram where the curve falls at the outset and eventually rises to a point higher than the starting point, suggesting the letter J. While a J-curve can apply to data in a ...
      Read More »

    • Return On Net Assets - RONA

      A measure of financial performance calculated as: Fixed assets are tangible property used in production, such as real estate and machinery. Net working capital is calculated by taking ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions