asked 10.6k views
3 votes
OIROI is a ratio measures not only efficiency, but also: CH 3

Liquidity
Leverage
Profitability
Only efficiency

1 Answer

0 votes

Final answer:

OIROI is a financial measurement that assesses efficiency and profitability of an investment by comparing the operating income to the initial cost of the investment.

Step-by-step explanation:

The acronym OIROI stands for Operating Income Return on Investment. Essentially, this is a measure used in finance to evaluate the efficiency of a given investment. In addition to efficiency, this ratio also gauges the profitability of the investment. It does so by comparing the operating income/earnings before interest and taxes (EBIT) to the initial investment cost. Hence, you can think of OIROI as a tool used in finance to assess both the efficiency and profitability of investments.

Learn more about OIROI

answered
User Jeison
by
8.2k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.