1.
:
The advantages to breaking down the computation of return on investment into the margin and turnover.
2.
Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.
Operating assets: Operating assets refer to those assets which are acquired by the company to support its ongoing business operations. These are the assets that contribute to generating revenue. For instance, cash, accounts receivable, prepaid expenses, and so on.
:
The missing information, and comment on the relative performance of the three companies. Also, provide a recommendation about how to improve the ROI.
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