Question

Return on operating assets equals:

Return on equity equals: *

Operating income margin equals: *

Return on investment equals: *

Operating asset turnover equals: *

Answer 1

Many formula are each of items but i am providing the best which generally used to calculate

1:- Return on operating Assets =( Net Operating profit after tax / Net average operations assets ) X 100 %

* net Operating assets = Operating assets - operating liability

2:- Return on Equity= (Net income after tax - preferred dividend / Average equity capital) X 100%

3:- Operating income margin = Net operating income/ Net sales X 100 %

* Net operating income = Net income before deductions of interest and taxes.

4:- Return on investment = (Net Average Annual Profit / initial investment) X 100%

5:- Operating assets turnover ratio = Net sales / Operating Assets

* Operating Assets includes cash , marketable securities, inventory, account receivable etc

Note :- if you wanna to special formula regarding of these . please asks in comments section. Thanks