Answer Posted / khemraj k
ROI stands for Return On Investment , also known as Internal rate of return.
ROI= Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment. It is expressed in terms of a percentage of increase or decrease in the value of the investment during the year in question. For example, if you invested $100 dollars in share of stock and its value rises to $110 by the end of the fiscal year, the return on the investment is a healthy 10%, assuming no dividends were paid.
FORMULA goes like this
ROI= net profit /total investment *100
| Is This Answer Correct ? | 1 Yes | 0 No |
Post New Answer View All Answers
Explain what is balance sheet?
How do you maintain accounting accuracy?
What does the abbreviation dr mean in accounting?
As you know excellent communication skills are at the core of this position. Do you have experience with interpersonal communication in a professional setting?
Mention the types of accounts involved in double entry book-keeping?
service tax calculated on agreement value or market value whichver is higher for builders?
Explain me scrap value in accounting?
What is accounting ethics?
What is an over accrual?
How do you build a successful business relationship?
How Advances to suppliers for purchase of raw materials is to be considered while calculating Drawing Power
on the basis accounting,acounting is divided in to how many classes and what are they?
i got a case study in which theie is a chemical company group which has 12 companies in all, few in Europe and few in USA, my question is should i have only 2 COA as per the standard like US GAAP and IFRS or should i have COA based on country location.
Can a firm claim preliminary expenses incurred(manufacturing) or only its is applicable to Companies? can a firm claim ,1/5 of such expenses incurred as deduction as in case of Companies? or any other procedure.
The following information is extracted from the audited books of accounts of a chain of food stores for the period ended 31st December 2015. Revenue Statement (Trading and Profit and Loss Account for the year ended 31st December 2015. BWP’000 BWP’000 Sales 460 Cost of good sold (220) Gross profit 240 Wages 50 Other expenses 30 (80) Net Profit 160 Note: The purchase figure included in the cost of goods sold of P255 000. Balance Sheet as at 31st December 2015 BWP’000 BWP’000 Fixed Assets 400 Current assets: Stock 80 Debtors (trade) 120 Bank 400 ----- [600] Current liabilities: Trade creditors 300 ------ [300] 300 Net Assets 700 ==== Financed by: Share capital 600 Revenue reserves 100 ------ 700 Shareholders Funds 700 ===== Required: (a) Calculate the following accounting ratios: (i) Current ratio (ii) Acid test ratio (iii) Stock turnover (in days) (iv) Debtors turnover (in days) (v) Creditors turnover (in days) (vi) Return on capital employed (ROCE) (vii) Gross profit percentage (viii) Net profit percentage (b). Give a brief comment on the performance of the company, based on the above ratios.