ROI can be viewed as a function of the net profit margin times
A)Sales.
B)EAT.
C)The total asset turnover
D)Equity multiplier

Question

Quizplus · Accepted Answer

ROI (Return on Investment) can be viewed as a function of the net profit margin times the total asset turnover. This is because ROI is calculated by dividing net income by total assets, and this formula can be rearranged to show that ROI is the product of net profit margin (net income divided by sales) and total asset turnover (sales divided by total assets).

ROI Can Be Viewed as a Function of the Net