Return on investment (ROI) is often expressed as follows:

Required
1. What advantages are there in the breakdown of the computation into two separate components?
2. Fill in the blanks for the following table:

After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.

Transcribed Image Text:

Income Investment Revenues Investment Income Revenues Companies in Same Industry Revenues Income Investment Income as a percentage of revenues Investment turnover ROI $1,600,000 1,300,000 $ 96,000 78,000 $ 800,000 2,600,000 1.5% 2.0 3%