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If there are Fixed assets of ₹10,00,000, Current assets of ₹6,00,000, Current liabilities of ₹3,00,000 and Net profit before Interest and Tax of ₹2,60,000; then Return on Investment will be:

  1. A
    25%
  2. B
    30%
  3. C
    20%
  4. D
    15%

Solution & Step-by-step Explanation

Return on Investment () is calculated using the formula:

Where Capital Employed can be calculated as:


Substituting the values into the formula:

Practice this question

Try it yourself before checking the explanation above.

If there are Fixed assets of ₹10,00,000, Current assets of ₹6,00,000, Current liabilities of ₹3,00,000 and Net profit before Interest and Tax of ₹2,60,000; then Return on Investment will be:
A
25%
B
30%
C
20%
D
15%

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