Question

Assume three companies in the same industry have the following return on investment ratios:

Dogwood Co. = 11.4%
Elm Co. = 19.4%
Fir Co. = 13.7%

Based on this information alone, which company appears to have the best return on investment ratio?

Answer 1

Elm Co. appears to have the best return on investment ratio with a percentage of 19.4%.

Step-by-step explanation:

The company with the best return on investment ratio based on the given information is Elm Co. with a return on investment ratio of 19.4%. This ratio indicates that for every dollar invested by Elm Co., the company earns a return of 19.4 cents. In comparison, Dogwood Co. has a return on investment ratio of 11.4% and Fir Co. has a return on investment ratio of 13.7%, making Elm Co. the company with the highest return on investment.