The correct answer is D. (Net profit / Total assets) x 100.
Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.
There are many different ways to calculate ROI, but the most common is to use the following formula:
ROI = (Net profit / Total assets) x 100
Net profit is the amount of money left over after all expenses have been paid. Total assets are the total value of all the company’s assets, including cash, inventory, equipment, and property.
ROI is a useful tool for comparing the profitability of different investments. It can also be used to track the performance of an investment over time. However, it is important to note that ROI does not take into account the time value of money. This means that an investment with a high ROI may not be as profitable as an investment with a lower ROI if the higher-ROI investment requires a longer time to pay off.
The other options are not correct because they do not use the correct formula for calculating ROI. Option A uses the formula for gross profit margin, which is a measure of how much profit a company makes on each dollar of sales. Option B uses the formula for return on sales, which is a measure of how much profit a company makes on each dollar of sales. Option C uses the formula for return on assets, which is a measure of how much profit a company makes on each dollar of assets.