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Return on Investment (ROI)
Net profit measures the actual profit a company makes after all working expenses have been paid.
Net Profit Quotes in The Goal: A Process of Ongoing Improvement
The The Goal: A Process of Ongoing Improvement quotes below are all either spoken by Net Profit or refer to Net Profit. For each quote, you can also see the other terms and themes related to it (each theme is indicated by its own dot and icon, like this one:
).
Chapter 36 Quotes
“Everywhere, improvement was interpreted as almost synonymous to cost savings. People are concentrating on reducing operating expenses as if it’s the most important measurement.”
“Not even that,” Bob interrupts. “We were busy reducing costs that didn’t have any impact on reducing operating expenses.”
“Correct,” Lou continues. “But the important thing is that we, in our plant, have switched to regard throughput as the most important measurement. Improvement for us is not so much to reduce costs but to increase throughput.”
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Alex and his staff discuss the improvements they’ve made at the plant and try to figure out how they can keep building on those improvements. Lou’s comment suggests that, by traditional corporate wisdom, cutting costs will inevitably result in increased net profit and is thus how most people try to improve their business. While this notion seems obviously flawed by the end of the novel, it demonstrates the importance of having a clear goal in mind. Since Alex established that their primary goal is to make money, he and his staff centered their efforts around increasing their throughput rather than Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debit
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Net Profit Term Timeline in The Goal: A Process of Ongoing Improvement
The timeline below shows where the term Net Profit appears in The Goal: A Process of Ongoing Improvement. The colored dots and icons indicate which themes are associated with that appearance.
Chapter 4
Alex insists that a more efficient plant costs less money and thus makes a greater net profit . However, Jonah asks if his number of employees or amount of excess inventory has...
(full context)
Chapter 6
...a business needs to know if it makes more sales than its investments cost ( net profit ), how much return on its investment (ROI) it’s creating, and whether or not it...
(full context)
...home, Alex sits with a pad of paper and a pencil. He writes out “ net profit , ROI, and cash flow,” and stares at them, wondering if one can be prioritized...
(full context)
