Chapter 11 Flashcards

1
Q

ROI

A

Margin x Turnover = ROI

(Net operating income / Sales) x (Sales / Average operating assets) = ROI

Net Operating Income/ Average Operating Assets = ROI

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2
Q

Margin

A

Net operating income / Sales = Margin

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3
Q

Turnover

A

Sales / Average operating assets = Turnover

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4
Q

Residual Income

A
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