Assuming that sales and average operating assets remain the same,a company's return on investment will:

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Quizplus · Accepted Answer

Return on investment (ROI) is calculated as net operating income divided by average operating assets. If sales and average operating assets remain constant, the only way to increase ROI is by increasing net operating income. Therefore, if net operating income increases, ROI will also increase. Conversely, if net operating income decreases, ROI will also decrease. Margin (net operating income/sales) is a component of ROI, but it is not the only factor that determines ROI.

Assuming That Sales and Average Operating Assets Remain the Same,a