Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 
PDA

susan1sars
Nov 4, 2009, 03:12 PM
If revenue is 950,000, net income is 575,000 and the average assets are 495,000, what is the return on the investment?
decisionsupport
Nov 4, 2009, 04:49 PM
If the net income number you provided is after taxes and considering the fact that revenue is included in your information, you would use the DuPont formula.

your ROI will then basically be,

((Net Income / Revenue) x (Revenue / Average Total Assets)) * 100

(575,000 / 950,000) x (950,000 / 495,000) =
(.60526)x(1.91919) = 1.1616

1.1616 x 100 = 116%

Vital Knowledge (http://vitalbusinessinfo.blogspot.com)