Financial analysis:

Had Takealot conducted a return-on-investment ration and the outcome was 9%, would this have been considered positive or negative for the shareholders of the group? motivate your answer using the latest statistics

1 answer

A return-on-investment ratio of 9% would generally be considered positive for shareholders of Takealot. This is because it indicates that for every dollar invested in the company, shareholders are receiving a 9% return on that investment.

Looking at the latest statistics, the average return on investment for companies in the e-commerce sector is around 5-7%. Therefore, a 9% return would be above average and indicative of a well-performing company.

Additionally, a higher return-on-investment ratio suggests that the company is effectively using its resources to generate profits, which ultimately benefits shareholders. Therefore, a 9% return-on-investment ratio would be considered positive for the shareholders of Takealot.