[Verse 1] At the investment center level we stand Where managers control both profit and assets in hand They make decisions about capital allocation Building wealth through strategic calculation Revenue minus costs gives us the base But we need more to judge this management case [Chorus] R-O-I, return on investment high Net income over assets, watch the numbers fly Residual income too, when cost of capital's through Asset turnover and margin, that's how centers prove they're true Investment centers reign, measuring capital gain [Verse 2] Two components break down the ROI score Asset turnover shows how assets work and more Sales divided by assets gives the rate While profit margin seals the center's fate Net income over sales completes the view Multiply them both and ROI comes through [Chorus] R-O-I, return on investment high Net income over assets, watch the numbers fly Residual income too, when cost of capital's through Asset turnover and margin, that's how centers prove they're true Investment centers reign, measuring capital gain [Bridge] But ROI has limits, can discourage growth When projects earn less than current, managers say no That's where residual income saves the day Net income minus capital charge shows the way If positive, value's created for the firm Even if ROI drops, wealth continues to confirm [Verse 3] Asset management performance takes the stage Current assets, fixed assets, every page Working capital efficiency matters most Cash conversion cycles we monitor close From receivables to inventory flow To payables stretched, cash management show [Chorus] R-O-I, return on investment high Net income over assets, watch the numbers fly Residual income too, when cost of capital's through Asset turnover and margin, that's how centers prove they're true Investment centers reign, measuring capital gain [Outro] Sophisticated responsibility at its peak Capital efficiency is what we seek Investment centers hold the highest ground Where profit and assets both come around
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