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    Question

    The 'Return on Investment (ROI)' ratio is calculated

    as:
    A (Net Profit / Sales) * 100 Correct Answer Incorrect Answer
    B (Net Profit / Total Assets) * 100 Correct Answer Incorrect Answer
    C (Net Profit / Shareholders' Equity) * 100 Correct Answer Incorrect Answer
    D (Operating Profit / Capital Employed) * 100 Correct Answer Incorrect Answer

    Solution

    Return on Investment (ROI) or Return on Capital Employed (ROCE) is a profitability ratio that measures the efficiency with which a company uses its capital to generate profits. It is commonly calculated as (Earnings Before Interest and Tax (EBIT) / Capital Employed) * 100.

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