For the year 2015, systems corporation earned a net operating income of $2 million on sales of $6 million. assume that the company's average operating assets were $20 million. what is the company's roi?

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Business

Cristopher Li

8 December, 22:47

For the year 2015, systems corporation earned a net operating income of $2 million on sales of $6 million. assume that the company's average operating assets were $20 million. what is the company's roi?

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Darrell Clements · Answer 1

The solution would be like this:

Given: $20 million Asset

$2 million Income

$2,000,000 / $20,000,000

= 0.1

= 0.1 * 100%

= 10%

Therefore, Systems Corporation return of investment is 10%. To add, ROI is usually expressed as a percentage and is typically used for personal financial decisions, to compare a company's profitability or to compare the efficiency of different investments.