The separate components highlight several features of return on investment not revealed by a single calculation:a. The importance of investment turnover as a key to income is stressed. b. The importance of revenues is explicitly recognized. c. The important components are expressed as ratios or percentages instead of dollarfigures. This form of expression often enhances comparability of different divisions, businesses, and time periods. d. The breakdown stresses the possibility of trading off investment turnover for incomeas a percentage of revenues so as to increase the average ROI at a given level ofoutput
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