- Portion of a larger company that
- Account for more than 10% of the company revenues or assets
- Be distinguishable from company’s other lines of business in term of
- Risk
- Return
- Geographic segments
- when a business divides its market on the basis of geography
- Prepare more detailed analysis by examining
- the performance of business
- or geographic segments separately
- Firm’s overall performance
- Segment profit margins
- Asset utilization (turn over)
- Return on assets
Notes:
- Asset utilization = revenue/total asset
- Return on assets = net income/total assets
