2013年11月23日星期六

Rate of Return on Investment, Help Please!?

  • investment advice
  • for profit colleges
  • margin trading
I know to determine ROI you do the following:

ROI= Profit Margin X Investment Turnover

Profit Margin= Income from Operations/Sales

Investment Turnover=Sales/Invested Assests


I used this for each ROI % below and it is wrong. I don't understand what I am doing wrong. The only thing I can think of is that I am using "Revenues" as "Sales" am I doing that wrong?



Rate of Return on Investment


The Walt Disney Company has four profitable business segments, described as follows:

*Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!, and Disney.com.

*Parks and Resorts: Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties.

*Studio Entertainment: Walt Disney Pictures, Touchstone Pictures, Hollywood Pictures, Miramax Films, and Buena Vista Theatrical Productions.

*Consumer Products: Character merchandising, Disney stores, books, and magazines.


Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:


Income---Revenue---Invested Assests

4765-----16209-------26936

1418-----10667-------16945

175-------6136--------11104

609-------2425--------1278


a. Use the DuPont formula to determine the rate of return on investment for the four Disney sectors. In your computations, carry out amounts to two decimal places. If required, round your final answers to one decimal place.


ROI

Media Networks: ___%

Parks and Resorts: ___%

Studio Entertainment: ___%

Consumer Products: ___%


b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?

Rate of Return on Investment, Help Please!?

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