The ratio which is considered to be the best measure of overall profitability when judging the performance of internal management is:
A) return on total assets.
B) return on ordinary shareholders' funds.
C) gross profit margin.
D) net profit margin.

Question

Quizplus · Accepted Answer

Return on total assets (ROTA) is considered the best measure of overall profitability when judging the performance of internal management because it shows how effectively management is using the company's total assets to generate profits.

The Ratio Which Is Considered to Be the Best Measure