Return on investment (ROI) is calculated as
A) operating income/average operating assets.
B) average operating assets/operating income.
C) (beginning operating assets + ending operating assets)/2.
D) sales/average operating assets.
E) operating income/sales.

Question

Quizplus · Accepted Answer

ROI is calculated as operating income divided by average operating assets. This measures how effectively a company is using its resources to generate profits.

Return on Investment (ROI) Is Calculated as