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ROI can be calculated as:

a. average operating assets divided by net operating income
b. net operating income divided by average operating assets
c. margin multiplied by turnover
d. margin divided by turnover

Respuesta :

Answer:

Correct option is (b)

Explanation:

Return on investment or ROI measures the efficiency of investments by estimating the amount of net income generated from average assets of the company. Formula to compute ROI:

ROI = [tex]\frac{Net\ operating\ income}{Average\ operating\ assets} \times 100[/tex]

The better the ROI, the more efficient would be the company's investments.

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