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Question
Explain the following :
ROI.
Solution
ROI is calculated to know the return on investment in a business. It is ascertained by dividing the net profit earned with the total capital employed in the business. Higher the ROI, the better it is. It helps in knowing the efficiency and profitability of the business compared to other businesses and also the efficiency with which the capital is employed.
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RELATED QUESTIONS
State whether following statement is true or false :
ROI is calculated on ownership capital only.
Select the appropriate answer from the alternatives given below & rewrite the completed statement
The relationship between net profit before Tax, interest and dividend and capital employed is known from _____________.
Solve the following:
If total capital invested by company is Rs 5,00,000 and net profit before interest, tax and dividend is Rs 1,60,000, what is ROI?
Explain return on investment (ROI).
Explain the Return On Investment (ROI)
