The ROI calculation will indicate (C) how effectively a company used its invested capital.
<h3>
What is ROI?</h3>
- Return on investment, often known as return on costs, is a ratio of net income to investors.
- A high ROI indicates that the benefits of the investment outweigh the costs.
- ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.
<h3>What is ROI calculation?</h3>
- A computation that compares the monetary value of an investment against its cost.
- (profit minus cost) / cost is the ROI formula.
- If you earned $10,000 from a $1,000 investment, your return on investment (ROI) would be 0.9, or 90%.
- This is commonly obtained by using an investment calculator.
- The ROI calculation will show how well a business utilizes its invested capital.
As the description says, the ROI calculation will show how well a business utilizes its invested capital.
Therefore, the ROI calculation will indicate (C) how effectively a company used its invested capital.
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Complete question:
The ROI calculation will indicate:
A. the percentage of each sales dollar that is invested in assets.
B. the sales dollars generated from each dollar of income.
C. how effectively a company used its invested capital.
D. the invested capital generated from each dollar of income.
E. the overall quality of a company's earnings.
