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Jeff Doyle is evaluating results for three separate business segments under his control. Selected financial information for each segment follows: Sales Operating Income Average Assets
Jeff Doyle is evaluating results for three separate business segments under his control. Selected financial information for each segment follows: Sales Operating Income Average Assets Segment A $2,000,000 $ 325,000 $2,500,000 Segment B 3,500,000 Segment C 2,500,000 610,000 195,000 6,000,000 2,100,000 Rank order the three segments based on "margin," "turnover," and "return on investment." How is it possible that the rankings differ based on which evaluative model is used? If you had an extra $1,000,00 to invest, who whould receive it? Margin (operating income + sales) Segment A Turnover (sales + average assets) Segment A Segment B Segment C Segment B Segment C ROI (operating income + average assets) Segment A Segment B Segment C
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