How is a company's return on investment calculated?
A) Dividing the margin by the turnover.
B) Multiplying the margin by the turnover.
C) Dividing the turnover by the average operating assets.
D) Multiplying the turnover by the average operating assets.

Question

Quizplus · Accepted Answer

Return on investment (ROI) is calculated by multiplying the margin (net profit) by the turnover (asset turnover ratio).

How Is a Company's Return on Investment Calculated