Asked by
keturah Dixon
on Nov 12, 2024Verified
If the profit margin for a division is 11% and the investment turnover is 1.5, the return on investment is 7.3%.
Profit Margin
A financial metric that indicates the percentage of revenue that remains as profit after accounting for costs and expenses.
Investment Turnover
A measure of how efficiently an entity is using its investments to generate sales, typically calculated as sales divided by the average investment.
Return On Investment
A financial metric employed for assessing the profitability of an investment, calculated by dividing the investment's net profit by its initial cost.
- Understand the concept of return on investment (ROI) and how it is calculated.
Verified Answer
VA
Learning Objectives
- Understand the concept of return on investment (ROI) and how it is calculated.