Question

Calculate one financial statement ratio trend within your industry that warrants improvement efforts. Make up your own.

Here is the text book information, trend needs to be return on investment

Return on Investment LO 2 Explain the importance and show the calculation of return on investment. Imagine that you are preseYour intuitive selection of investment B as the better investment is confirmed by the fact that its rate of return is higherRate of return and riskiness related to an investment go hand in hand. Risk relates to the range of possible outcomes from anExhibit 3-1 Condensed Balance Sheets and Income Statement of Cruisers Inc. CRUISERS INC. Comparative Condensed Balance Sheets

From the firms balance sheets: Total assets. September 30, 2019 $364,720 Total assets, September 30, 2020 $402,654 From theThe DuPont Model: An Expansion of the ROI Calculation LO 3 Illustrate how to calculate and interpret margin and turnover usinCalculation of ROI using the DuPont model is illustrated here, using data from the financial statements of Cruisers in Exhibi

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Answer #1

The ROI & due point ROI calculation ignores time value of money, one can't ignore time value of money.

The IRR ratio (Internal Rate of Return) provides the rate of return generated considering time value of money which will be true indicator. The IRR depends on leveraging used.

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