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This article recommends an alternate procedure to provide a statistic for situations where the rates of return on original and additional capital investments vary. Computations of earnings-per-share data should be based on the weighted average number of common shares and common share equivalents outstanding during each period presented. Use of a weighted average is necessary so that the effect of increases or decreases in outstanding shares on earnings-per-share data is related to the portion of the period during which the related consideration affected operations. The importance to the security analyst of estimating future earnings in the analysis of various securities is also recognized by the Securities and Exchange Commission.

The article explains how return on investment can be used as a concept of business management so that the shareholders' objective is executed in business management decisions and policies in the U.S. The following are the business policy that should be considered: setting objects, control of operating performance, product pricing and product mix and capital investments. Return on investment is a sound concept of managing a business. It is also a valuable objective aid to business judgment. The following steps should be considered to ensure the implementation of business policy: use of simple accounting rules, establishment of mutually agreeable objectives, search for improvement areas and regular measurement of results.

The article discusses the significance of reporting return on investment (ROI) in audited financial statements in the United States. The long-run trend of ROI data for a particular business, if accurately computed on a consistent basis, could be reliable indicators regarding whether the earnings and dividend return to stockholders is fair in view of the risk involved. ROI data can also show whether enough earnings are being generated and retained in order to finance expansion plans. These data can also demonstrate whether real capital is being maintained despite inflation. These can also show whether enough revenue is being generated to make the business attract more capital whenever needed.