The following information is available for the Sting Company: $\begin{array} { l }
\text { Sales}& \$250,000\
\text {Invested capital }&156,250 \
\text { ROI}& 10\%\
\end{array}$
The capital turnover ratio is:
A) 0.625
B) 1.600
C) 0.100
D) None of these answers is correct.

Question

The following information is available for the Sting Company: $\begin{array} { l  }
 \text { Sales}& \$250,000\
 \text {Invested capital }&156,250 \
 \text { ROI}& 10\%\
\end{array}$
 The capital turnover ratio is:
A) 0.625
B) 1.600
C) 0.100
D) None of these answers is correct.

Quizplus · Accepted Answer

The capital turnover ratio is calculated as Sales divided by Invested Capital. So, $ \frac{250,000}{156,250} = 1.6 $.

The Following Information Is Available for the Sting Company Sales$250,000Invested capital 156,250 ROI10%\begin{array} { l } \text { Sales}& \$250,000\\ \text {Invested capital }&156,250 \\ \text { ROI}& 10\%\\\end{array} SalesInvested capital ROI​$250,000156,25010%​

The Following Information Is Available for the Sting Company $\begin{array} { l } \text { Sales}& \$250,000\\ \text {Invested capital }&156,250 \\ \text { ROI}& 10\%\\\end{array}$