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What does the return on investment ratio indicate? - Accountancy

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प्रश्न

What does the return on investment ratio indicate?

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उत्तर

Return on investment shows the proportion of net profit before interest and tax to capital employed (shareholders’ funds and long-term debts). This ratio measures how efficiently the capital employed is used in the business. It is an overall measure of the profitability of a business concern.

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पाठ 9: Ratio Analysis - Very Short Answer Questions [पृष्ठ ३२०]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 9 Ratio Analysis
Very Short Answer Questions | Q II 4. | पृष्ठ ३२०
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