Asked by Cassie Birth on Jun 20, 2024
Verified
The profit margin component of return on investment analysis focuses on profitability by indicating the rate of profit earned on each sales dollar.
Profit Margin
A financial metric indicating the percentage of revenue that remains as profit after deducting expenses.
Return On Investment
A financial metric used to evaluate the efficiency of an investment, calculated as the return from an investment relative to its cost.
- Learn the procedures and consequences of determining profit margin, investment turnover, and residual income.
Verified Answer
KS
Kayla SmithJun 24, 2024
Final Answer :
True
Explanation :
The profit margin component of ROI analysis is used to measure profitability by indicating the rate of profit earned on each sales dollar.
Learning Objectives
- Learn the procedures and consequences of determining profit margin, investment turnover, and residual income.
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