The correct answer is C. Net profit/Sales.
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.
Net profit is the total revenue of a company minus all expenses, including taxes. Sales is the total amount of money that a company brings in from selling its products or services.
Option A is incorrect because the net profit ratio is calculated by dividing net profit by sales. The capital turnover ratio is calculated by dividing sales by capital employed.
Option B is incorrect because the operating net profit ratio is calculated by dividing operating profit by sales. Shareholders fund is the total amount of money that shareholders have invested in a company.
Option D is incorrect because cost of sales is the total cost of goods sold by a company. Capital employed is the total amount of money that a company has invested in its assets.