Answer / bhushan pawar

ROI one of the most important ratio...Helps you identify
profit made against investment in total assets includes
working capital,capital investment etc.....

ROI=Margin X Velocity
where
Margin=Profit/sales
Velocity=Sales/Total Assets

Case:
1)Some businesses are very competitve...where margins are
very low...the only way is to improve ROI is to improve ur
velocities that is by increasing ur sale.....
for ex: walmart..offers product at very cheap prices but
bcoz of velocity i.e.sales still leader in the market....
2)Margins can be improved by improving the efficiency of
the business units....working on the operational aspect
will help in improving performance....for example...Value
Engg.,Value Analysis,Six Sigma,Kaizen etc...
3)If the organisation is innovator then it is easier for u
to keep higher margin as there is really very low
competition for organisation in the market....
Most of the Tech and pharma based organisation survive bcoz
of there innovativeness...

stage fear

2 Answers   Genpact,

---

What do you understand by Securities market?

0 Answers   SEBI,

---

if a person having bussiness of advertising total income is 2.lacs but the in that amount it also includes amount for the material(colour) that has pusrhased and labour charges so do we have to pay the income tax on the material amount and labour charges

0 Answers  

---

Comment on Budget 2017 - 18 and current five year plan?

0 Answers   SEBI,

---

What is a term loan agreement?

0 Answers  

---

---

What are the components of proprietary ratio?

0 Answers  

---

Expand CTS.

0 Answers   SEBI,

---

In which year national housing bank (nhb) started its operation?

0 Answers  

---

Explain About Openpages?

0 Answers   IBM,

---

What are the strategies used to implement stop loss?

0 Answers   SEBI,

---

Do you think India is Out of recession?

3 Answers   HP,

---

What all ways a bill collector can collect his debt from a customer?

0 Answers  

---