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
2
Q
Margin
A
Net operating income / Sales = Margin
3
Q
Turnover
A
Sales / Average operating assets = Turnover
4
Q
Residual Income
A