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Jordon Robinson
on Dec 17, 2024

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If operating income for a division is $6,000, invested assets are $25,000, and sales are $30,000, the investment turnover is 1.2.

Investment Turnover

A measure of a company's efficiency in generating sales from its assets, calculated as sales divided by the average invested assets.

Operating Income

A company's profit after subtracting operating expenses, such as wages and cost of goods sold, but before deducting interest and taxes.

  • Scrutinize the calculation and implication of investment turnover in performance measurement.
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kayla sandersonDec 18, 2024
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