Calculating Return on Investment for Stewart Industries Divisions

a. Compute the return on investment for each division.

Division Percent Retail Division fill in the blank 1 % Commercial Division fill in the blank 2 % Data Analytics Division fill in the blank 3 %

a. Return on Investment Calculation

The return on investment (ROI) for the Retail Division, Commercial Division, and Data Analytics Division are 26%, 20%, and 16% respectively.

To calculate ROI, we divide the operating income by the invested assets and multiply by 100 to get a percentage.

Calculating Return on Investment

Retail Division: ROI = (11,700,000 / 45,000,000) * 100 = 26%

Commercial Division: ROI = (12,600,000 / 63,000,000) * 100 = 20%

Data Analytics Division: ROI = (1,920,000 / 12,000,000) * 100 = 16%

The most profitable division per dollar invested is the Retail Division with an ROI of 26%.

Return on Investment (ROI) by dividing the operating income by invested assets and then multiplying by 100. The Retail Division's ROI is 26%, the Commercial Division's ROI is 20%, and the Data Analytics Division's ROI is 16%.

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