contestada

All of the following equations represent return on investment (ROI) EXCEPT:

A. efficiency × productivity.
B. operating income / investment.
C. return on sales × inventory turnover.
D. (operating income / sales) × (sales / investment).

Respuesta :

Answer:

A. efficiency × productivity.

Explanation:

Return of Investment is a financial measure of profitablity from the investment of the company. It is a ratio of profit from the investment to the cost of invesment. It is helpful in comparing profitablity of several investment.

Return of investment (ROI)= [tex]\frac{operating\ income}{sales\ revenue}\times \frac{sales}{Total\ asset}[/tex]

or

Return of investment (ROI)= [tex]sales\ margin \times capital\ turnover[/tex]

Or

Return of investment (ROI)= [tex]\frac{Operating\ income}{Total\ asset}[/tex]

ROI also show percentage of operating income from each dollar of assets.