Performance measures
Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Performance Management. 17 min read, ~2,562 words.
ROI = Operating Income / Invested Capital, decomposing into return on sales × turnover; RI = Operating Income − (Required Rate × Invested Capital), expressed in dollars. RI accepts any project above the hurdle; ROI rejects below-average winners, so a 21% division refuses an 18% project that still clears the...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 1C3
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