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-   -   Profit Margin, ROI, Turnover (https://www.askmehelpdesk.com/showthread.php?t=36348)

  • Oct 9, 2006, 08:13 PM
    rebel_sweetie_02
    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
  • Oct 9, 2006, 09:07 PM
    CaptainForest
    ROI = (Gain of Investment - Cost of Investment) / Cost of Investment

    Profit Margin = Net Income / Revenue
  • May 22, 2008, 08:56 AM
    mollybear
    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
  • May 22, 2008, 05:16 PM
    morgaine300
    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)
  • Aug 22, 2009, 11:23 AM
    avinash_jpr
    Invested Capital = Current Assets + Non-Current Assets = Total Assets = $750,000
    Total Asset Turnover = Sales/ Total Assets = $600,000/$750,000 = 0.8
    Net income = Net Profit = $96,000
    Net Profit Margin = Net Profit / Sales = $96,000/$600,000 = 0.16
    Return on Assets = Net Profit Margin * Total Asset Turnover = 0.16 * 0.8 = 0.128

    So
    Total Asset Turnover = 0.8
    Net Profit Margin = 0.16
    Return on Assets = 0.128

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