Will the ROI decrease if current assets decrease and everything else remains the same?

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1179642

2026-07-26 18:55

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Yes, if current assets decrease while everything else remains the same, the Return on Investment (ROI) can decrease. ROI is calculated as net profit divided by total assets. A reduction in current assets without a corresponding change in net profit would lead to a lower denominator in the ROI calculation, potentially resulting in a diminished ROI.

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