Question

All of the following equations represent return on investment (ROI) EXCEPT:

Answer 1

Answer:

A. efficiency × productivity.

Explanation:

Return of Investment is a financial measure of profitablity from the investment of the company. It is a ratio of profit from the investment to the cost of invesment. It is helpful in comparing profitablity of several investment.

Return of investment (ROI)= $\frac{operating\ income}{sales\ revenue}\times \frac{sales}{Total\ asset}$

or

Return of investment (ROI)= $sales\ margin \times capital\ turnover$

Or

Return of investment (ROI)= $\frac{Operating\ income}{Total\ asset}$

ROI also show percentage of operating income from each dollar of assets.