Ratios are used for many purposes; performance measurement is one such application. However, not all performance measures are expressed as a ratio. Do some research on the Internet to learn about operating leverage, ROI, EVA, and pick another performance measure of your choice. You will note that there are variations in the computations of a particular measurement. Consistency in application is the key.
Use information from the latest financial statement from the Raytheon Corporation to compute the 4 (four) measurements:
Operating Leverage, ROI, EVA, and additional choice
Reflect on the advantages and disadvantages of these performance measures. Choose your preferred measure and explain your rationale.
Modular SLP Assignment Expectations
Always include the name of the organization(s), time period covered and source of information. It is important to answer the questions as posed. The document should be from 2 to 4 pages and written in a clear and concise manner. Don’t forget to include tables as required. Support your discussion or tables with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved. You can turn in the spreadsheet instead of the Word document. The content should be equivalent to the page length suggested for a word processing document.