Asked by
Nabil Boulos
on Nov 12, 2024
Verified
The return on investment may be computed by multiplying investment turnover by the profit margin.
Return on Investment
A measure used to evaluate the efficiency or profitability of an investment, computed as the net profit of the investment divided by the cost of the investment.
Investment Turnover
A measure of a company's efficiency in using its assets to generate sales or revenue.
Profit Margin
A financial indicator representing the proportion of income that surpasses the expenses related to the sale of goods, demonstrating a company's profitability.
- Gain an understanding of how to calculate return on investment (ROI) and identify its essential components.
Verified Answer
LG
Learning Objectives
- Gain an understanding of how to calculate return on investment (ROI) and identify its essential components.