Question

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

A. efficiency × productivity.
B. operating income / investment.
C. return on sales × inventory turnover.
D. (operating income / sales) × (sales / investment).

Answer 1

A. efficiency × productivity.

Step-by-step 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)=
`(operating\ income)/(sales\ revenue)* (sales)/(Total\ asset)`

or

Return of investment (ROI)=
`sales\ margin * capital\ turnover`

Or

Return of investment (ROI)=
`(Operating\ income)/(Total\ asset)`

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