Operating Income ROI

Operating Income ROI (in %) – The bigger the numerical ratio the better.

Return on Assets (ROA) and Operating Income Return on Investment (OIROI) are other names this ratio is also known as.

This is one of the Efficiency Ratios in which the more efficient a company uses its resources, the more profitable a company is.

Calculate this ratio using the below equation. Values in the equation can be acquired from the Balance Sheet (with the exception of “Operating Income” which is found in the Income Statement).

Equation:

Operating Income ROI = (Operating Income) ÷ (Total Assets)

Equation results indicate how much operating income is generated for every dollar invested in assets Note: A low OIROI indicates problems with sales, pricing, or operating costs.