A huge number of variations of ROT are determined in practice, based upon how "Investment" and "Return" are explained "Investment" may be explained to comprise any of the subsequent:
1. Gross capital employed:
Net fixed assets + total current assets + other assets Ratio Analysis
2. Net capital employed:
Net fixed assets + net current assets + other assets
3. Proprietors' net capital:
Total assets - (Current liabilities + long-term employed borrowing + any other outside funds)
4. Average capital employed:
Opening + closing balances of capital, reserves, accumulated depreciation and borrowings/2
As the same, 'Return' may be explained to include any of the subsequent:
1 Gross profit
2 PBDIT that is Profits before depreciation, interest and taxes
3 Profits before depreciation, interest and taxes but excluding capital and extraordinary nary profits: PBDIT
4 PBT that is Profits before tax
5 Profits before tax but excluding capital and extraordinary profits as: PBT, the subsequent versions of ROI are utilized in practice as:
1. Gross Return on Investment =Gross Profit/Total Net Assets
2. Net Return on Investment = Net Profit/Total Net Assets
3. Return on Capital Employed that is (ROCE)
= Profit before tax + Interest/Net Worth+ Interest bearing debt.
4. ROI (based on PBDIT) is = PBDIT as per cent of average capital Employed
5. ROI (based on PBT)
= PBT average of capital and Investment Analysis as percent of reserves