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Light Fusion
on Nov 12, 2024

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If the profit margin for a division is 8% and the investment turnover is 1.2, the return on investment is 9.6%.

Profit Margin

A measure of a company's profitability, typically defined as net income divided by revenue, and expressed as a percentage.

Investment Turnover

A component of the rate of return on investment, computed as the ratio of sales to invested assets.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing the profit gained on an investment by the cost of the investment.

  • Understand the calculation of return on investment (ROI) and its components.
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Devar DuhaneyNov 18, 2024
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