Improving Profitability Measurement: Impact of Intellectual Capital Efficiency on Return on Total Employed Resources in Smart and Knowledge-Intensive Companies

This paper aims to emphasize the quantification of intellectual capital, not disclosed on assets side balance sheet in smart and knowledge-based enterprise, because it is very important for more precise profitability ratio, such as return (ROA). For this purpose, suggests EIC (efficiency capital) methodology. It points out necessity new formula, gives methodological solutions it, investigates impacts capital (IC) efficiency indicators traditional formulas case knowledge-intensive companies. The research confirms importance improving measurement knowledge economy era, where exists dominance intangible assets. emphasizes need correction denominator ROA indicator. comprehensive total especially its non-disclosed component sheet, provides information accurate measurements. issue financial ROA. can be achieved by incorporating value resources, which are undisclosed denominator. solution results creating a indicator—return employed resources (EOR). EOR indicator successful capturing enterprise’s performance compared with indicators. fact leads conclusion that better