Which of the following formulas is the investment turnover factor as used in determining the return on investment?
A) Invested Assets/Sales
B) Income from Operations/Invested Assets
C) Income from Operations/Sales
D) Sales/Invested Assets

Question

Quizplus · Accepted Answer

The investment turnover factor is calculated by dividing sales by invested assets. This formula measures how efficiently a company is using its invested assets to generate revenue. The higher the turnover factor, the better the company is at using its assets to generate revenue. Therefore, option D is the correct answer.

Which of the Following Formulas Is the Investment Turnover Factor