Question

Between 2010 and 2016, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC) from $5 million to $25 million. The company was able to do this by expanding its product line to include a wider variety of flavors. The $20 million increase in its ROIC between 2010 and 2016 can be referred to as which of the following

Answer 1

Profit growth

Step-by-step explanation:

If between 2010 and 2016, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC) from $5 million to $25 million. The $20 million increase in its ROIC between 2010 and 2016 can be referred to as Profit growth

Return on invested capital or simply return on equity / return on investment is a measure of profitability that expresses net income as a percentage of net assets or equity.

The measure attempts to look at how much the money invested into the business has yielded over time.

Hence any growth in this measure can be referred to as growth in profitability,