Why must income used in computing return on invested capital be adjusted to reflect the capital base

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Why must income used in computing return on invested capital be adjusted to reflect the capital base (denominator) used in the computation?

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Financial Statement Analysis

ISBN: 978-0078110962

11th edition

Authors: K. R. Subramanyam, John Wild

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Question Posted: Jan 22, 2015 10:29 AM

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Why must income used in computing return on invested capital be adjusted to reflect the capital base

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The basic formula for computing the return on investment is net in...View the full answer

Financial Statement Analysis

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