The return on investment is calculated by multiplying the capital turnover by the return on sales.

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The return on investment (ROI) is calculated by multiplying the capital turnover by the return on sales. This is because ROI measures the efficiency of an investment by dividing the net income from the investment by the amount of capital invested. Capital turnover measures the number of times that the capital invested in a business is turned over in a given period of time. Return on sales measures the net income from a business as a percentage of its sales revenue. By multiplying capital turnover by return on sales, we can determine how efficiently the capital invested in a business is being used to generate income.

The Return on Investment Is Calculated by Multiplying the Capital