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8.10 Return on Investment Analysis Template

What is the Return on Investment Template and why is it important in a business plan for Lights On Electrical, Inc.?

The Return on Investment is a key profitability ratio that shows how well a small business like Lights On Electrical, Inc. is able to cover the investment in total assets made by its owners. It is calculated by taking the Earnings before Income Taxes and dividing that by the total assets of the firm.

The Return on Investment template gives a small business owner like Andy Powell the ability to present the reader of the business plan in both numerical and graphic format the projected Return on Investment for the next three years.

What calculations go into the Return on Investment Template for a Electrical Contractor business?

There are only two inputs that go into the Return on Investment Template - the Earnings before Income and Taxes (EBIT) and the Total Assets of the small business. Once you input these two numbers into the template, the ratio and chart are automatically updated and you can click on the output tab from where this output can be copied and pasted directly into the business plan word document.

Quick Links:

  1. Go to the Corresponding Questionnaire section for this industry.
  2. Go to the Corresponding Business Plan section for this industry.

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