Return on investment (ROI) is calculated as
A) Operating income/Average operating assets
B) (Operating income/Sales) x (Sales/Average operating assets)
C) Operating income margin x Operating asset turnover
D) all of the above

Question

Quizplus · Accepted Answer

All the options provided represent different ways to calculate Return on Investment (ROI). Option A directly states the basic formula. Option B breaks down the calculation into two components: operating income margin (Operating income/Sales) and operating asset turnover (Sales/Average operating assets), which when multiplied together give the ROI. Option C describes the same components as in B but in a conceptual manner rather than a formulaic one.

Return on Investment (ROI) Is Calculated as