Skip to content

Ask the Tutor ACCA MA

Residual Income and ROI

JJames4y ago
ROI provides relative measure of investment performance but Residual Income don't. What does this mean tutor?
John MoffatJohn MoffatTutor4y ago#1
ROI looks at the profit relative to the size of the business (by expressing the profit as a % of the amount invested), and so different sized divisions can be compared. This is not the case for the RI.
Sign into reply to this topic.