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susan1sars
Nov 4, 2009, 04:12 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, 05:49 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%

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