The given statement is False.
Return on investment (ROI) can be calculated using the traditional formula of Operating income / Average operating assets.
What is meant by return of investment?
- Profit from Investment (ROI), a comparison between the financial value of an investment and its cost
- ROI is calculated as (profit – cost) / cost.
- ROI, often known as return on investment, is a key performance indicator (KPI) that firms frequently use to assess the profitability of an investment.
- It is incredibly helpful for tracking progress over time and removing uncertainty from future business decisions.
- At least three variables contribute: market power, economies of scale, and management caliber.
To learn more about Return on investment refer,
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