Question

ROI can be calculated as Blank______.

Multiple select question.

margin × turnover


net operating income ÷ average operating assets


margin ÷ turnover


average operating assets ÷ net operating income

Answer 1

ROI (Return on Investment) can be calculated using the following formulas:

1. **margin × turnover** - This formula relates to ROI, where margin is the net profit margin and turnover is the asset turnover ratio.

2. **net operating income ÷ average operating assets** - This formula directly indicates the return on investment by dividing the net operating income by the average operating assets.

Therefore, the correct options for calculating ROI are:
- margin × turnover
- net operating income ÷ average operating assets

The other options:
- **margin ÷ turnover** is not a standard calculation for ROI.
- **average operating assets ÷ net operating income** is also not correct.

Thus, you should select the first two options: **margin × turnover** and **net operating income ÷ average operating assets**.