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Which of the following is the numerator in the calculation of the turnover component ofROI?

A)Operating income.
B)Sales.
C)Invested capita.l
D)Total assets

User Dsharlet
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1 Answer

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Final answer:

The numerator in the calculation of the turnover component of ROI is Sales.

Step-by-step explanation:

The numerator in the calculation of the turnover component of Return on Investment (ROI) is Sales.

ROI is a financial ratio used to measure the profitability of an investment. It is calculated by dividing the operating income (numerator) by the invested capital (denominator).

However, in the case of the turnover component of ROI, the numerator is the Sales figure. The turnover component focuses on the relationship between sales and the invested capital to determine how efficiently the capital is being used to generate sales.

User Alex Riabov
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