Unlike ROCE, ROI is a bit more flexible, as it can be used to compare products, but also projects and various investment opportunities. The downfall of ROI is that it doesn’t take the factor of time into account. An investment can have the same ROI and yet one can provide that return...
income. (Earnings before interest and taxes / Sales) Profit margin, net margin or net profit margin Return on equity (ROE) Return on investment (ROI ratio or Du Pont ratio) Return on assets (ROA) 13 Return on assets Du Pont (ROA Du Pont) ...
ROI = Operating Income / Average Liabilities a) True b) False State true or false and justify your answer: Retained earnings that are restricted are unavailable for dividends. A corporation does not have a legal obligation to pay dividends. A. Tru...
Residual income equals average operating assets multiplied by the difference between the return on investment and the required rate of return. a. True. b. False. The return on investment of a company can be improved by either increasing average t...