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How To Really Measure a Company's Innovation Prowess

Harvard Business Review

So it began disaggregating return on equity into three components. Return on equity (net income divided by equity) results from multiplying three key operating ratios: Profitability (net income over sales). Operating efficiency (sales over assets). Innovation success rate (successful ideas divided by total ideas explored).

article thumbnail

How To Really Measure a Company's Innovation Prowess

Harvard Business Review

So it began disaggregating return on equity into three components. Return on equity (net income divided by equity) results from multiplying three key operating ratios: Profitability (net income over sales). Operating efficiency (sales over assets). Innovation success rate (successful ideas divided by total ideas explored).