The return on investment ROI may be calculated as ........

Accountancy (Phase -I & II) Ratio analysis

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The return on investment (ROI) may be calculated as

Net profit before interest, tax and dividend / Capital employed

Net profit after interest, tax and dividend / Shareholder's fund

( Net profit - preference dividend )/ No. of equity shares

Return on Investment / Net profit ratio

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Explanation:

Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed. Net operating profit is often called EBIT or earnings before interest and taxes.