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ROI/RI and Capital Investment figure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › ROI/RI and Capital Investment figure

  • This topic has 2 replies, 2 voices, and was last updated 9 years ago by ursulaanna45.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • November 28, 2015 at 10:54 am #285884
    ursulaanna45
    Member
    • Topics: 33
    • Replies: 47
    • ☆☆

    Hi

    When calculating ROI/RI how do I know which figure to take for Capital employed – figure invested at the start of the year or Average capital investment for the year?

    Thank you

    November 28, 2015 at 12:30 pm #285908
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    EVA takes the figure at the start so, for simplicity, use that for RI and ROI also. If worried say something like:

    ROI (based on opening capital invested) =

    November 28, 2015 at 7:45 pm #286016
    ursulaanna45
    Member
    • Topics: 33
    • Replies: 47
    • ☆☆

    Thank you

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