Can somebody help me with this question.
Barneys Corp gave operating results for 2005 for its three divisions: Clothes, Bedding, and Shoes
Clothes Bedding Shoes
Sales 380,000 1,700,000 2,000,000
Oper Profits 20,000 50,000 100,000
Divisional assts 200,000 625,000 800,000
What is the ROI for each division?
Any help would be great. thanks
Accounting question - ROI?say yes
Also called Return on Total Investment, or ROI, the Return on Total Assets measures the Net Earnings in relation to the Total Assets. The Return on Total Assets identifies how well the investments of the company (the Total Assets) have generated earnings (Net Earnings) back to the company.
ROI = Net earnings/Total assets
ROI for:
Clothes : 20/200 = 10%
Bedding : 50/625 = 8%
Shoes : 100/800 = 12.5%
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