Question

The ratio of sales to invested assets, which is also a factor in the DuPont formula for determining the rate of return on investment, is called

Answer 1

Investment turnover

Step-by-step explanation:

Investment turnover is used to compare the revenue earned by a business to the invested assets (equity or debt). It measures how effectively the business is using investment to generate profit.

The number of times investment is converted to revenue is calculated using this method (that is the turnover).

This metric is used in the Dupont formula.

Dupont formula is a financial ratio that evaluates a company's ability to increase return on equity.

Three main components of the Dupont formula are: profit margin, total asset turnover, and financial leverage.