Asked by Aidan Packer on Jul 08, 2024
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The return on investment may be computed by multiplying investment turnover by the profit margin.
Return on Investment
A financial ratio that calculates the percentage gain or loss on an investment relative to the cost of the investment, indicating the efficiency of the investment.
Investment Turnover
The ratio of sales to invested assets.
Profit Margin
A financial metric, calculated as net income divided by revenue, that indicates the percentage of sales that exceeds the costs of goods sold.
- Acquire knowledge on the appraisal of leadership efficacy and operational efficiency within departments by applying financial parameters, notably return on investment.
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Learning Objectives
- Acquire knowledge on the appraisal of leadership efficacy and operational efficiency within departments by applying financial parameters, notably return on investment.
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