Method on finding Simple Profitability Ratio R1

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An example is that avatar cost 280 (million) to make and earned them 760 (million). Their simple profitability ration R1 was 2.71 and their R2 was 1.72.

how can I find these R1 and R2's for other numbers?

Oct 19th, 2015

Thank you for the opportunity to help you with your question!

R1 = earned / cost = 760/280 = 2.71

for R2 

 earning - cost = 760-280 = 480

R2 =   (earning - cost)/ cost = 1.72

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Oct 19th, 2015

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Oct 19th, 2015
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