Return on investment (ROI) is the result of multiplying:
A) Return by average investment.
B) Profit by average operating assets.
C) Return on sales (ROS) by asset turnover (AT).
D) Return on assets (ROA) by asset turnover (AT).
E) Margin on sales by return on assets (ROA).

Question

Quizplus · Accepted Answer

C) Return on sales (ROS) by asset turnover (AT) is a correct formula for calculating ROI, as ROI can be broken down into these two components to analyze profitability and efficiency separately.

Return on Investment (ROI) Is the Result of Multiplying