Question
The Asset turnover is 5 times and Net margin is 3% for
PQR Ltd. What is the Return on Investment for PQR Ltd?Solution
Here, Return on Investment (ROI) can be calculated using the DuPont formula. It uses the net profit margin and total asset turnover in the calculation of ROI. ROI = Net profit/total investment (or total assets) Since Asset turnover = Sales/Total asset and net profit margin = Net profit/sales), net profit/total asset, by multiplying Asset turnover and Net profit Margin , one can arrive at the ROI. As such, ROI = 5*3% = 15%.
Which of the following is true about Neo banking in India?
Â
Statement 1: Neo banks are digital-only banks that operate exclusively ...
What new regulatory framework did SEBI introduce to redefine market capitalization computation for listed companies?
Which committee's recommendations form the basis of the modern Working Capital Assessment under the turnover method in India?
Under which of the following type of guarantees, the banker guarantees payment of installments spread over a period?
Which country is projected to have the highest per-capita income growth in the world at 5.4 per cent per annum during 2024-33, according to a report by ...
Which of the following is NOT a benefit of career development and management systems for managers?
As per the RBI’s updated directions, what is the maximum permissible tenor for Non-Convertible Debentures (NCDs) issued by eligible participants?
What does the abbreviation "AIS" stand for in the context of Indian Income Tax?
Which of the following best describes a "bulge bracket" investment bank?
Who among the following can issue Certificate of Deposits to raise short term resources?
