MAAW's Chapter 14 | Return on Investment Main Page
CTR = Capital Turnover Ratio = (Sales ÷ Investment)
ROS = Return on Sales = Net Income ÷ Sales
ROI = Return on Investment = (CTR)(ROS)
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.