The formula for ROI can be broken down as follows: ROI = profit margin x asset turnover.

Name: The formula for ROI can be broken down as follows: ROI = profit margin x asset turnover.
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The formula for ROI is commonly expressed as ROI = (Net Profit / Total Assets) x 100%. However, this formula can also be broken down as (Net Profit / Sales) x (Sales / Total Assets), which can be simplified to Profit Margin x Asset Turnover.

The Formula for ROI Can Be Broken Down as Follows