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    114adamsr's Avatar
    114adamsr Posts: 1, Reputation: 1
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    #1

    Dec 8, 2016, 12:55 PM
    How to calculate comparative financial performance (ROI, RI, EVA & ROS)
    If the sales of a company is 4.55 billion, cost 3.5 billion, (making profit 1.05 billion), and investment 75 billion, (Investment is the actual net asset value), what would the performance measures be? I have tried to calculate ROI, using income/investment x100 which gave me 1.05/75 x 100 = 140% which can't be right?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Dec 8, 2016, 03:30 PM
    wacky maths 1.05/75=0.014 x 100=1.4% when solving equations approximate the answer it will give you perspective regarding the result.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #3

    Dec 8, 2016, 04:30 PM
    1.05/75 x 100 = 140%? How can you have a number greater than 1 by dividing 1.05?75? You need a new calculator. 1.4% is correct
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