Question: How do we calculate Return on Investment? Select one: a. Net Income X Average Operating Assets b. Net Income / Average Operating Assets c. Operating

How do we calculate Return on Investment? Select one: a. Net Income X Average Operating Assets b. Net Income / Average Operating Assets c. Operating Income / Average Operating Assets d. Operating Income X Average Operating Assets

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

What is the formula to calculate return on investment ( ROI ) ? Margin * Turnover ( Operating income / Sales ) * ( Sales / Average operating assets ) Operating income / Average operating assets All...

Halliburton and Schlumberger compete in the oil field services sector. Refer to the following financial data for the two companies to answer the requirements. $ millions HAL SLB Total revenue $ 2 4 ,...

20. All other things equal, a company's return on investment (ROM) would generally increase when: a: average operating assets increase. b: sales decrease c: operating expenses decrease. d: operating...

Yoonj Company has a Components Division which produces parts for product divisions within the company as well as for outside manufacturers. The company's Business Products Division has asked the...

When using return on investment (ROI) as a performance measure: the average operating assets that produced the income are included in the calculation. the average operating assets that produced the...

The return on investment is computed as: Sales divided by average operating assets Operating income divided by average operating assets Operating income divided by sales Operating asset turnover...

1. Compute return on investment (ROI). 2. Compute residual income. X S.a.fi Return on Investment (ROI) and Residual Income - Excel ? - FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In %...

Required information The Foundational 15 (Algo) (LO10-1, LO10-2) The following information applies to the questions displayed below.) Westerville Company reported the following results from last...

THIS IS ALL ONE ASSIGNMENT. I HAVE ALREADY DONE THE VERTICAL AND HORIZONAL ANALYSIS WHICH ARE THE LAST 2 PICTURES. I JUST NEED HELP WITH WRITTEN INTERPRETATION OF THE RATIO ANALYSIS, HORIZONTAL...

Financial data for Redstone Company for last year appear below: Redstone Company Income Statement Last year Sales$1,222,000 Less: operating expenses 1,099,800 Net Operating Income122,200 Less...

The cantilever beam of length L has a circular cross section of diameter d. The beam carries a distributed load that varies linearly as shown in the figure. Find the expression for the ratio max/max...

The cast iron block with cross-sectional dimensions of 2.5 in. by 2.5 in. consists of two pieces. The pieces are prevented from sliding along the 55 inclined joint by the steel key, which is 2.5 in....

3. Which of the following is not true for sound waves? (a) They can travel through gas. (c) They can travel through a solid. (b) They can travel through a liquid. (d) They can travel through a vacuum.

10 Write a function called dispMenu which prints the menu as shown in the example, checks whether the user input is valid, then returns the user input to the calling program. The function output...