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blanca saavedra
on Nov 12, 2024

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If income from operations for a division is $6,000, invested assets are $25,000, and sales are $30,000, the investment turnover is 5.

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of sales to investment in assets.

Income From Operations

The profit realized from a business's ongoing, core business activities, excluding deductions of interest and taxes.

Invested Assets

Resources or funds committed to investments in securities, real estate, or other vehicles with the expectation of earning returns.

  • Recognize the elements of ROI, encompassing both profit margin and investment turnover, and comprehend their significance.
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Marco EcheverriaNov 14, 2024
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