ROI, Residual Income, and Economic Value Added - ppt video online
{"Image DocumentName": "Return on Investment (ROI) Formula", "Image ImageDescription": "3-5. Return on Investment (ROI) Formula. Income before interest. and taxes (EBIT) ROI = Net operating income. Average operating assets. An investment center\u2019s performance is often evaluated using a measure called return on investment (ROI). ROI is defined as net operating income divided by average operating assets. Net operating income is income before taxes and is sometimes referred to as earnings before interest and taxes (EBIT). Operating assets include cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes. Net operating income is used in the numerator because the denominator consists only of operating assets. The operating asset base used in the formula is typically computed as the average operating assets (beginning assets + ending assets/2). Cash, accounts receivable, inventory, plant and equipment, and other. productive assets.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}