For the calculation of ROI and RI, should I always use PBIT as profit figure? If PBIT is not available, then use Profit before interest. If profit interest is still not available, I then should use net profit?

Is this logic correct of using profit figure for RI and ROI calculations?

acaqub says

Dear John,

For the calculation of ROI and RI, should I always use PBIT as profit figure? If PBIT is not available, then use Profit before interest. If profit interest is still not available, I then should use net profit?

Is this logic correct of using profit figure for RI and ROI calculations?

Thanks!

John Moffat says

These are measures for divisions, and divisions will not be paying interest or tax.

acaqub says

Thanks a lot John!