Return on Investment (ROI) is often expressed as follows:
Required: 1. What advantages are there in the breakdown of the computation into two separate components? 2. Fill in the following blanks:
After filling in the blanks, comment on the relative performance of these companies as thoroughly as the data permit.
(ROI) is often expressed as follows:
Income Income Revenue Investment Revenue Investment Companies in Same Industry A B C Revenue $1,000,000 $500,000 ? $ 100,000 $ 50,000 $ 500,000 Income ? Investment ? $5,000,000 Income as a percentage of revenue ? ? 0.5% Investment turnover ? ? ROI ? 1% ?