[1] It is an indicator of the effectiveness of brand use in terms of generating net income, a special case of return on assets.
It is believed that if the brand value of the company increases, its net profit should also increase, otherwise the value of ROB will decrease, which indicates a decrease in the effectiveness of brand management in terms of creating net profit.
At the same time, if the brand value falls, and this does not lead to a decrease in the net profit of the enterprise, the ROB value increases, which indicates a relative increase in the brand management efficiency.
Thus, ROB allows to clarify how effective it is for a company to change the value of the brand associated with it.
For this reason, the diagnosis of the impact of brand value on a business is relevant only with a joint analysis of ROB.