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ADVFN HomeHelpFinancialsDeeper AnalysisOPERATING RATIOS - Profitability RatiosReturn on Investment (ROI)
OPERATING RATIOS - Profitability Ratios
  Return on Capital Employed (ROCE)
  Return on Assets (ROA)
  Net Profit Margin
  Assets Turnover
  Return on Investment (ROI)
  Dividend Payout Ratio
  Plowback Ratio
  Growth from Plowback
  Net Income of Revenues

Return on Investment (ROI)

Return on Investment ratio, measures of a company's profitability equal to the profit attributable to ordinary shareholders divided by the average ordinary and preferred capital plus long-term debt. ROI measures how effectively the firm uses its capital to generate profit; the higher the ROI, the better. The formula is the following:

= [attributable profit / average (ordinary capital & reserves + prefs & minorities + creditors,long + creditors,other + subordinated loans + insurance funds)] * 100

= [attributable profit / average (long-term capital + equity)] * 100




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