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Charity Dixon
on Nov 12, 2024

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If income from operations for a division is $5,000, invested assets are $25,000, and sales are $30,000, the profit margin is 20%.

Profit Margin

A financial ratio used to assess a company's profitability by dividing net income by revenue, demonstrating the percentage of revenue that constitutes profit.

Income From Operations

The income earned from a company's everyday core business operations, excluding income from investments and other non-operational sources.

Invested Assets

Assets that are purchased or acquired for long-term income potential or to benefit the business operations.

  • Uncover the parts of ROI, like profit margin and investment turnover, and perceive their significance.
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