Final answer:
Alice Co. has the lowest return on investment ratio of 8.7%, compared to Betsy Co.'s 9.4% and Carol Co.'s 10.2%, making it appear to have the worst ROI among the three companies provided.
Step-by-step explanation:
Based on the provided return on investment (ROI) ratios, Alice Co. appears to have the worst ROI ratio at 8.7%. Meanwhile, Betsy Co. has a slightly higher ROI of 9.4%, and Carol Co. has the best ROI among the three at 10.2%. When investors consider where to allocate their funds, they generally look for a higher ROI, as it indicates the efficiency of an investment in generating profits relative to its costs.
'Return on investment ratio' is fundamentally important for comparing the potential profitability across different investment opportunities within the same industry. A thorough analysis often includes additional data such as risk factors, market conditions, and the strategic positioning of each company. However, with just the ROI figures given, one could reason that Alice Co. is less efficient at using its investment capital to generate profits compared to its industry counterparts.