The formula for an individual division's return on investment is not its operating income divided by the current year's capital expenditures plus cost of capital. "Investment" needs to include more than just the current year's capital expenditures, and the cost of capital is not used in the calculation of return on investment.
The formula for an individual division's return on investment is its operating income divided by its total assets (or average total assets, if that is available or can be calculated).
The formula for an individual division's return on investment is not its operating income divided by its fixed assets. "Investment" includes more than just fixed assets.
The formula for an individual division's return on investment is not its operating income minus imputed interest charged for invested capital. Operating income minus imputed interest charged for invested capital is residual income.
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