BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Total Investment X EBIT
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EBIT X EBT
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EBIT / Total Investment
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EBT / Total Investment
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Detailed explanation-1: -The most common is net income divided by the total cost of the investment, or ROI = Net income / Cost of investment x 100.
Detailed explanation-2: -ROCE looks at earnings before interest and taxes (EBIT) compared to capital employed to determine how efficiently a firm uses capital to generate earnings. ROI compares the profits of an investment compared to the cost of the investment to determine gains.
Detailed explanation-3: -Return on investment (ROI) is an approximate measure of an investment’s profitability. ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100.
Detailed explanation-4: -You may calculate the return on investment using the formula: ROI = Net Profit / Cost of the investment * 100 If you are an investor, the ROI shows you the profitability of your investments.