Asked by Kiana Despabiladero on May 26, 2024
Verified
Which of the following ratios measures the earnings of a company on each sales dollar?
A) Return on assets
B) Return on sales
C) Return on inventory
D) Return on stockholders' equity
Return on Sales
A financial ratio that calculates how efficiently a company is at generating operating profit from its revenue.
Return on Assets
Return on Assets (ROA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficient a company is at using its assets to generate profits.
Return on Inventory
A financial metric used to assess how effectively a company generates profits from its inventory investments.
- Master the computation and assessment of profitability ratios for evaluating financial success.
Verified Answer
Learning Objectives
- Master the computation and assessment of profitability ratios for evaluating financial success.
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