What advantages are there to breaking down the ROI computation into two separate elements margin and turnover?
Define the major types and sources of cognitive biases.
August 15, 2017Why does bureaucracy remain cornerstone of organization structure? What are three principles used for designing organizational structure that avoid bureaucratic dysfunction?
August 15, 2017What advantages are there to breaking down the ROI computation into two separate elements margin and turnover?
Company A Company B Company C
Sales 4,000,000 1,500,000 ?
Net Operating Income 560,000 210,000 ?
Average Operating Assets 2,000,000 ? 3,000,000
Margin ? ? 3.5%
Turnover ? ? 2
Return On Investment (ROI) ? 7% ?
1) What advantages are there to breaking down the ROI computation into two separate elements margin and turnover?
2) Fill in the missing information above and the comment on the relative performance of the three companies in as much detail as the data permit. Make specific recommendations about how to improve the ROI.
