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Home > Business & Careers > Accounting   »   Profit Margin, ROI, Turnover

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Old Oct 9, 2006, 08:13 PM
rebel_sweetie_02
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Profit Margin, ROI, Turnover
How do I find the ROI, profit margin, and turnover when the following is given:

$750,000- invested capital
$600,000-sales in one year
$96,000- profit in one year

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Old Oct 9, 2006, 09:07 PM   #2  
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ROI = (Gain of Investment - Cost of Investment) / Cost of Investment

Profit Margin = Net Income / Revenue
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Old May 22, 2008, 08:56 AM   #3  
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How do I find the ROI, profit margin, and turnover when the following is given:

$750,000- invested capital
$600,000-sales in one year
$96,000- profit in one year
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Old May 22, 2008, 05:16 PM   #4  
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From the info given, I suspect you're looking for the Dupont extended equation, which you should be able to find in your textbook:

ROI = profit margin x asset turnover

profit margin = net profit/sales

asset turnover = sales/assets (i.e. invested capital)
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