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MANAGEMENT AND ACCOUNTING WEB |
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Read Diagram |
CTR = Capital Turnover Ratio ROS = Return on Sales
ROI = Return on Investment = (CTR)(ROS)
Examples: When the CTR is 2.5
and the ROS is 4, the ROI is 10.
When the CTR is 2.5 and the ROS is 8, the ROI is 20.
