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    susan1sars's Avatar
    susan1sars Posts: 14, Reputation: 1
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    #1

    Nov 4, 2009, 04:12 PM
    Return on Investment
    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's Avatar
    decisionsupport Posts: 31, Reputation: 1
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    #2

    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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    decisionsupport Posts: 31, Reputation: 1
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    #3

    Jun 25, 2012, 02:51 PM
    I moved my blog if anyone is interested in following up.. eFinancialAnalysis

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